BHP Petroleum plans additional appraisal drilling on Trion block offshore Mexico during this year’s second half, the company said in an operational update. Previously, BHP sold its US shale operations to focus on conventional oil and gas in the US Gulf of Mexico and Australia.
Oil and gas holdings also include properties in Trinidad and Tobago, Algeria, and UK.
In Mexico, BHP encountered oil with the Trion-2DEL appraisal well in 2018. This was followed by a downdip sidetrack that encountered oil and water, further appraising the field and delineating the resource.
An additional appraisal well (3DEL) is planned yet this year to delineate resources (OGJ Online, Feb. 13, 2019).
Elsewhere, the Deepwater Invictus rig will drill three wells in Trinidad and Tobago Phase 3 deepwater operations. Drilling will test three prospects in BHP’s northern licenses around the Bongos discovery.
Bele-1, the first of these wells, was spudded on Mar. 2. Drilling continues.
Production
For the 9 months ended Mar. 31, BHP’s crude oil, condensate, and natural gas liquids production decreased by 5% to 42 MMboe. Executives said natural field decline and a 70-day planned dry dock maintenance program at Pyrenees, Australia, contributed to the liquids decline.
Natural gas production increased by 4% to 299 bcf.
BHP said US Gulf operations partially offset its overall declining oil, condensate, and NGL production.
In February, the BHP board approved development of Atlantis Phase 3. BHP holds 44% interest in Atlantis, operated by BP PLC, which previously sanctions Phase 3 (OGJ Online, Jan. 14, 2019).
BPH spent $438 million on exploration during the 9 months ended Mar. 31 The company plans to spend $750 million on exploration and appraisal throughout its financial year this year.
Contact Paula Dittrick at [email protected].
