13th Feb 2019 06:05
LONDON (Alliance News) - BHP Group PLC said on Wednesday it has approved the funding of two projects in Mexico the blue chip miner has holdings in, at the total of USD952 million.
BHP approved USD696 million in funding to develop the Atlantis Phase Three project in the US Gulf of Mexico.
BHP currently holds a 44% interest in the Atlantis oil field, while UK oil major BP PLC holds a 56% operating interest.
In early January, BP approved a major extension for the Atlantis oil field, which will involve the construction of a new subsea production system from eight new wells all tied to the existing oil platform, 150 miles south of the city of New Orleans, US.
This is expected to increase gross production from the platform by an estimated 38,000 barrels of oil equivalent per day at its peak and is scheduled to come on-steam in 2020.
BP's approval was given after advanced seismic imaging and reservoir characterisation found a further 400 million barrels of oil in the Atlantis field.
BHP Group also announced that it has approved USD256 million in funding to drill an additional well in the Trion field in Mexico, to further characterise the resource.
BHP holds a 60% operating interest in Trion, while Mexican state-owned petroleum company PEMEX holds a 40% interest.
The new appraisal well is intended to confirm the volume and composition of hydrocarbons near the crest of the Trion structure, and will be drilled in the second half of 2019.
"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 Steve Pastor, president of Operations Petroleum.
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