BHP PLANS $3.7 BILLION IN 1990S UPSTREAM OUTLAYS

BHP Petroleum Pty. Ltd. (BHPP) plans to spend $3.7 billion (Australian) on oil and gas projects the next 7 years.

The Melbourne company's spending plans for the rest of the decade are a means to move away from dependence on oil production from Australia's Bass Strait. BHPP and operator Esso Australia Resources Ltd. hold 5050 interests in a number of Bass Strait oil fields, which account for most of BHPP's worldwide production.

Meantime, BHPP exploration outlays worldwide will rise to $300 million this year from $285 million last year. A growing share of that spending will go for exploratory work in proven oil basins, while the share earmarked for frontier areas will fall to 31% from 45%.

Separately, BHPP's U.S. unit disclosed test results from its West Cameron area discovery in the Gulf of Mexico off Louisiana.

Among projects planned or under development and their costs to BHPP are:

Kutubu oil field development in Papua New Guinea's south central highlands, $190 million. Kutubu recently started up, marking Papua New Guinea's first commercial oil production (OGJ, June 29, p. 44).
Goodwyn gas/condensate field development on Australia's Northwest Shelf, $290 million.
Wanaea/Cossack $210 million and Griffin $270 million oil field developments on the Northwest Shelf.
West Tuna $500 million and East Bream $150 million oil field developments in Bass Strait.
Hamilton $510 million, Douglas $540 million, and Bruce $600 million oil field developments in the U.K. North Sea.

NEW ERA

BHPP Chief Executive Officer Peter Willcox said his company is embarking on a new era because production from new projects in 1993-94 will more than offset declining production from the company's mature fields.

At the same time, Willcox said he is confident infill work and new development around currently producing Bass Strait fields will ensure the current 300,000 b/d production there is maintained to the end of the decade. Recent infill drilling in Bass Strait's giant Kingfish field has boosted production there by 60,000 b/d, and similar work is planned for Mackerel field.

Another key development possibly in the offing for BHPP involves Viet Nam's international solicitation to develop Dai Hung oil field, likely that country's biggest at more than 500 million bbl, off its southern coast.

A group led by BHPP has made the short list of five combines under the solicitation. BHPP holds 65% interest in the group, with other interests held by Deminex 20% and Petronas 15%.

GULF OF MEXICO

Plans call for start of production about Oct. 1 from West Cameron 76 field in the Gulf of Mexico at a cost of $25 million to BHP Petroleum (Americas) Inc. for its 30% interest.

BHP's 1 West Cameron 76 Working Interest Unit flowed at a rate of 18.6 MMcfd on a 6 hr test through a 2/64 in. choke with 6,292 psi flowing tubing pressure from pay at 13,414-595 ft true vertical depth (TVD).

The completion, with more than 40 ft of net pay, tapped the first of three apparently Commercial zones. Net pay for the other zones is estimated at a total of 117 ft.

The well was drilled to 16,900 ft measured depth, 15,679 ft TVD, on the Clarinet prospect on West Cameron Blocks 60, 61, 76, and 77.

BHP was preparing to suspend the well and release the rig at last report. Plans call for immediate installation of a platform jacket with production from the 1 West Cameron 76 and 1 West Cameron 60 wells to begin soon.

BHP's partners are Nerco Oil & Gas Co. Inc. 20%, CNG Producing Co. 20%, Brooklyn Union Exploration Co. 15%, Ridgewood Energy Partnerships 11.24%, and Enserch Exploration Partners Ltd. 3.76%.