BHP makes deepwater discovery in the Gulf of Mexico

July 1, 2003
BHP Billiton Ltd. has found oil in a wildcat on the ultradeepwater Chinook prospect in the US Gulf of Mexico, reported interest owner Petroleo Brasileiro SA (Petrobras).

By Peter Howard Wertheim
OGJ Correspondent

RIO DE JANEIRO, July 1 -- BHP Billiton Ltd. has found oil in a wildcat on the ultradeepwater Chinook prospect in the US Gulf of Mexico, reported interest owner Petroleo Brasileiro SA (Petrobras).

The BHP Billiton-operated C.R. Luigs drillship on Jan. 13 spudded the Chinook #3 well on Walker Ridge Block 469. The well, drilled in 8,830 ft of water, reached 27,650 ft TD and discovered a gross oil column of 620 ft, with 260 ft of net pay. It was temporarily abandoned for future use.

Operator BHP Billiton has 40% interest in the Chinook prospect; Petrobras owns a 30% interest, and Total SA and Amerada Hess Corp. are the other interest holders, with 15% each.

"The Chinook discovery is a very encouraging exploratory result and will be subject of additional appraisal activities, as well as development production studies, to reach definitive conclusions relative to the scale of the resource," said Luciana Bastos de Freitas Rachid, executive manager of the company's investors relations department.

The Chinook prospect is about 20 miles south of recently discovered Cascade, also on the Walker Ridge block. Petrobras holds a 25% interest in that discovery well, drilled in 2002.

"Petrobras's participation in these two discoveries represents important steps towards the consolidation of a quality deepwater exploration and production portfolio in the Gulf of Mexico," concluded Rachid.

Cuba
This discovery comes on the heels of a recent invitation by the Cuban government for Petrobras to search for oil in the Cuban sector of the Gulf of Mexico (OGJLA, May 28, 2003).

Carlos Lage, Cuba's vice-president and Felipe Perez Roque, the island country's foreign minister, are beginning an official visit to Brazil on Wednesday. A source at Cuba's embassy in Brazil told OGJ that Cuban diplomats here expect that the visiting Cuban officials will personally reiterate to Brazil's President Luiz Inácio Lula da Silva the invitation for Petrobras to search for oil in Cuba.