BHP considers conventional oil attractive for decades

BHP said its conventional oil assets look to be attractive investments “for several decades,” particularly its holdings offshore Mexico and offshore eastern Canada. During an operations update, BHP executives said the company expects to spud an appraisal well on Trion in late December with earliest production expected in the mid 2020s. BHP is the operator with 60% interest.

Melbourne-based BHP said its conventional oil assets look to be attractive investments “for several decades,” particularly its holdings offshore Mexico and offshore eastern Canada.

During an operations update, BHP executives said the company expects to spud an appraisal well on Trion in late December with earliest production expected in the mid 2020s (OGJ Online, Apr. 17, 2019). BHP is the operator with 60% interest.

Previously, BHP Petroleum (New Ventures) Corp. has said it plans a drilling program in the Orphan basin offshore eastern Canada where it holds two exploration licenses (EL1157 and EL1158). BHP holds 100% interest in the licenses.

Subject to regulatory approval, BHP expects drilling will begin in 2021 or 2022 offshore Newfoundland. Earliest production tentatively is scheduled for the early 2030s, BHP said.

Previously, BHP sold its US shale operations to focus on conventional oil and gas in the US Gulf of Mexico and Australia. Current oil and gas holdings also include properties in Trinidad and Tobago, Algeria, and the UK.

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