Major projects under development are tracking to plan and evaluation and analysis of discoveries are ongoing, BHP Petroleum said in an operational update for the quarter ended Sept. 30.
In the quarter, BHP drilled two additional exploration wells in its northern licenses in Trinidad and Tobago as part of Phase 4 of its deepwater drilling campaign. Boom-1 (BHP, operator with 70%) was spudded on Aug. 28 and reached a TD of 5,035 m. The well, targeting gas within the Late Miocene, encountered hydrocarbons. Evaluation and analysis are ongoing.
Carnival-1 (BHP, operator with 70%) was spudded on Sept. 30 and reached TD of 2,391 m after the end of the quarter. The well, targeting gas within the Late Miocene, was a dry hole.
The exploration program on the Trinidad and Tobago Northern licenses is complete. Evaluation and development planning studies of the discoveries in the north are ongoing. Following Carnival-1, Transocean’s ultradeepwater Invictus drillship will return to the US Gulf of Mexico to complete regulatory abandonment work on Shenzi appraisal and exploration boreholes.
In Mexico, BHP encountered oil with the Trion-3DEL appraisal well (BHP, operator with 60%). The well, targeting the Eocene formation, was spudded July 9 and reached total well depth of 4,615 m. The well encountered oil in the reservoirs up dip from all previous well intersections. Evaluation and analysis are continuing and no further appraisal wells are anticipated, the company said.
In the US Gulf of Mexico, BHP was the apparent high bidder on blocks GC124 and GC168 in the central Gulf of Mexico, building on its position in the Green Canyon area (OGJ Online, Aug. 21, 2019). The company also was the apparent high bidder on 18 additional blocks.
In Australia, the National Offshore Petroleum Titles Administrator approved the surrender of the WA-255-P exploration permit following the company’s technical assessment of remaining potential.
BHP spent $162 million during the quarter, of which $69 million was expensed. A $700-million exploration and appraisal program is being executed for the 2020 financial year.
Production
During the most recent 2019 quarter, the company approved an investment of $283 million (BHP’s share) for the development of the Ruby oil and gas project (BHP, operator with 68.46%) on Block 3A offshore Trinidad and Tobago (OGJ Online, Aug. 8, 2019). The $500-million project involves a shallow-water tie-back of five production wells to existing processing facilities in Greater Angostura field on Block 2C about 8 km east. The overall project is 6% complete.
Atlantis Phase 3 in the US Gulf of Mexico (BHP, with 44%) is on schedule and on budget. The $696-million project involves a subsea production system that will tie back to the existing Atlantis facility with capacity to produce up to 38,000 gross boe/d (OGJ Online, Feb. 13, 2019). The overall project is 17% complete with an initial production target date of 2020.
Mad Dog Phase 2 in the US Gulf of Mexico (BHP, with 23.9%) is on schedule and on budget. The $2.2-billion project involves a floating production facility with the capacity to produce up to 140,000 gross b/d of crude (OGJ Online, Feb. 9, 2019). The overall project is 58% complete with an initial production target date of 2022.
The Bass Strait West Barracouta project is tracking to plan and is expected to achieve first production in 2021 (OGJ Online, Dec. 13, 2018).
On Sept. 3, Minerva gas field reached end-of-field life and production ceased at the Minerva gas plant. BHP previously agreed to sell its 90% interest in the gas plant to the Casino Henry joint venture following the cessation of gas processing from Minerva gas field (OGJ Online, May 1, 2018). The sale is expected to close in this year’s fourth quarter.
For the 3 months ended Sept. 30 BHP’s total petroleum production decreased by 11% to 29 million boe. Guidance for the 2020 financial year remains unchanged at 110-116 million boe. The company’s crude oil, condensate, and natural gas liquids production decreased by 11% to 13 million boe. The company said Tropical Storm Barry in the Gulf of Mexico and natural field decline across the portfolio contributed to the decline.
Natural gas production decreased by 11% to 100 bcf, reflecting a decrease in tax barrels at Trinidad and Tobago in accordance with the terms of its production-sharing contract, planned maintenance at North West Shelf, and natural field decline across the portfolio.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
