BHP set to deliver first oil from Atlantis project

BHP is on track to reach a milestone at the Atlantis Phase 3 in the Gulf of Mexico, with first oil production forecast for this year.

Chief executive officer Mike Henry, in a half-year report, said Atlantis Phase 3, alongside medium-term projects; Mad Dog 2, Ruby and West Barracouta, would produce 25 million barrels of oil equivalent (MMboe) combined in 2023.

The Atlantis phase 3 expansion will increase the production capacity of the Atlantis Deepwater oil and gas field by 38,000 boe a day. Atlantis is one of the biggest production fields in the Gulf of Mexico, United States.

“We have a rich suite of high return brown and green field value creation opportunities,” Henry said.

With the Scarborough liquefied natural gas (LNG) development offshore Western Australia in the Carnarvon Basin set to reach a final investment decision (FID) by mid-2020, Henry said it offers BHP with production potential in 2024.

BHP last week approved a feasibility study for the proposed $16 billion Scarborough LNG development offshore Western Australia in the Carnarvon Basin.

The company announced that the feasibility study would be the third and final phase required to finalise a proposal for an FID.

BHP owns a 25 per cent interest in the LNG project, which is being developed by joint venture partner Woodside (75 per cent).

Following a gas discovery at Trinidad and Tobago last year, BHP is continuing to progress appraisal and development options.

“Our successful petroleum appraisal programs continue to replenish our portfolio,” Henry said. “Our foundations are rock solid, and our first-half performance is indicative of our momentum.”

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