Photo by: Bloomberg
PERTH (miningweekly.com) – Mining major BHP on Wednesday approved $696-million in funding to develop the Atlantis Phase 3 project, in the Gulf of Mexico, after project partner BP in January approved a $1.3-billion expansion of the project.
The Atlantis Phase 3 development will include the construction of a new subsea production system from eight new wells that will be tied into the current platform, off the US coast.
The expansion project is scheduled to come on line in 2020, and will boost production at the existing platform by an estimated 38 000 bbl/d of oil equivalent.
BHP president operations, petroleum Steve Pastor said the Phase 3 project provided a competitive opportunity to deliver on the company’s strategy to grow resources in Tier 1 conventional deep-water assets.
“The project will further expand the Atlantis field and will provide cost-efficient, near term volumes.”
BHP holds a 44% interest in the Atlantis field while BP holds a 56% interest.
Meanwhile, BHP on Wednesday also approved $256-million in funding to drill an additional appraisal well and perform further studies in the Trion field, in Mexico, to further delineate the scale and characterisation of the resource.
The primary objectives of the appraisal well and studies are to confirm the volume and composition of hydrocarbons near the crest of the Trion structure, and study the viability of development of the Trion field.
“A further appraisal well at Trion, following the recent encouraging results at the 2DEL appraisal well, reduces investment risk and adds value to this project. If Trion is determined to be commercial, these funds will also provide an option to potentially accelerate development of Trion,” said Pastor.
The appraisal well will be drilled in the second half of the 2019 calendar year, and the approved funds are within the forecast BHP exploration and appraisal expenditure budget.
BHP holds a 60% interest in Trion.