BHP reports Atlantis-6 appraisal success, commits $1.1 billion to Atlantis development
By OGJ editors
HOUSTON, Feb. 11 -- BHP Billiton's US unit BHP Petroleum (Americas) Inc. reported Monday that operator BP PLC encountered thick pay zones in the Atlantis-6 (GC 743-5) appraisal well on Green Canyon Block 743 in the Gulf of Mexico, confirming the presence of hydrocarbons in the previously unexplored northern part of the Atlantis structure. In addition, BHP said it has approved full funding for Atlantis field development.
The Deepwater Horizon rig drilled Atlantis-6 in 5,405 ft of water to a TD of 20,131 ft. The well cut 460 ft of net oil pay (605 ft gross) and 200 ft of net gas pay (360 ft gross). Additional drilling and appraisal will be necessary to assess the impact on overall reserves, BHP said. Before Atlantis-6 was drilled, gross proven and probable reserves at Atlantis was estimated at 635 MMboe.
BP holds a 56% interest in Atlantis field, and BHP has a 44% working interest.
BHP funds $1.1 billion
Also on Monday, BHP said it approved $1.1 billion for its share of the cost of development of Atlantis oil and gas reserves. The sum includes $355 million the company already approved in May 2002 to fund detailed engineering and design work, purchasing of long-lead items, and awarding of major contracts.
This completes the investment commitment by BHP Billiton that will be necessary to bring Atlantis into production and recover the present estimate of 635 MMboe gross reserves. The funds will cover the completion of project engineering, predrilling activities, and completion of the initial producing wells, and construction and installation of production facilities and subsea equipment.
Based upon recently completed engineering, planning, and contracting studies, first oil is targeted for third quarter 2006. Production is expected to reach plateau levels at nameplate design capacity within the first 6 months of operation. The field has an estimated production life of about 15 years.
Atlantis field
The Atlantis development is on the Atwater foldbelt, 125 miles south of New Orleans in the vicinity of Green Canyon Block 743, comprising seven blocks in 4,400-7,100 ft of water. The field will be developed using a moored semisubmersible production facility with gross design capacity of 150,000 b/d and 180 MMcfd of natural gas. The system design contains provisions for future capacity expansions. Exploitation of any additional upside volumes would be the subject of future detailed engineering and cost estimates.
Atlantis is believed to be the third largest oil and gas field yet discovered in the Gulf of Mexico and is one of the 50 largest hydrocarbon fields discovered among the more than 31,000 fields found to date in the US.
Atlantis field was discovered in June 1998 in 4,400 ft of water with the Atlantis-1 well drilled on Green Canyon Block 699. Further appraisal wells were drilled in third quarter 2000 (Atlantis 2 and sidetrack) and third quarter 2001 (Atlantis 3 and sidetrack).