An international oil and gas company is to undertake a �35m programme to search for gas and oil off the coast of north Wales.

The Anglo-Australian firm BHP Billiton, already a giant in the mining industry, wants to scour the seabed between Wales and Ireland in the search for the valuable reserves.

The search will be based at the Douglas platform off north Wales and the Lennox platform off Southport

The company plans to supply gas to the Connah's Quay power station and store oil offshore.

In March, this year BHP Billiton confirmed an investment of �3m in a new headquarters in north Wales.

The company, which employs more than 900 people across the UK, is relocating from London to Northop, in Flintshire.

It followed the announcement of record production levels, with over �27m of orders placed with businesses throughout north Wales and the north west of England in 2001.

The firm operates a gas terminal at Point of Ayr near Prestatyn which processes gas from its offshore Liverpool Bay development.

Offshore production

The mining giant decided to move to Northop because the proximity to its Liverpool Bay unit - the largest petroleum asset operated by BHP Billiton.

At the heart of the development is the Douglas offshore production complex, 24km off the north Wales coast.

Members of the Welsh Development Agency (WDA) have said they are hopeful jobs will be created by the relocation move.

BHP Billiton is moving to offices which formerly housed Kimberley Clark.

The Northop unit will be the base for the company's purchasing and buying unit.

Staff from London have been offered relocation packages.