BHP Billiton, a Melbourne-based energy company, plans to spend $2.9 billion on oil and natural gas activities during its fiscal 2016, which is a 6% decline from its earlier estimates. Nonetheless, BHP maintained its previous production goals, noting strong momentum from Texas shale plays.
Regarding onshore US liquids production, BHP Billiton reported continued strong output in the Permian and the South Texas Eagle Ford. The company's latest US onshore budget calls for $1.4 billion in spending.
Andrew Mackenzie, BHP Billiton chief executive officer, said, "BHP Billiton remains on track to meet full-year production and cost guidance after a solid operational performance this year. In petroleum, we continue to reduce costs in both our onshore US and conventional businesses."
BHP Billiton expects to produce 237 million boe during fiscal 2016, a guidance that's unchanged from previous estimates. Its fiscal year ends June 30.
The company reported crude oil, condensate, and natural gas liquids production for the quarter ended Sept. 30 at 30.7 million boe.
Permian basin liquids production rose 103% for the September quarter compared with the same period a year ago, said an operational review that BPH Billiton released Oct. 21.
Liquids production for Black Hawk field in the Eagle Ford increased by 25% for the September quarter compared with the same period a year ago.
"We continue to expect annual volumes from these liquids-rich fields to be stable year on year," the operational review said.
