BHP Approves $696MM Funding for BP Project

BHP Approves $696MM Funding for BP Project
BHP approves a total of $952 million in funding for BP's Atlantis Phase 3 and drilling of an appraisal well in the Trion field offshore Mexico.

BHP’s board has approved $696 million in funding to develop BP plc’s Atlantis Phase 3 project in the U.S. Gulf of Mexico, BHP announced Wednesday.

BP approved a $1.3 billion expansion for the Atlantis Phase 3 development in early January.

BHP holds a 44 percent interest in the Atlantis field and BP holds 56 percent interest.

The Atlantis Phase 3 project is a subsea tieback of eight new production wells that will be drilled to access infill resource opportunities. First production is expected in happen in 2020 and increase production by about 38,000 barrels of oil equivalent per day at peak.

“The Atlantis Phase 3 project provides a competitive opportunity to deliver on our strategy to grow resources in Tier 1 conventional deepwater assets,” Steve Pastor, BHP President Operations Petroleum, said in a release.

BHP also announced it approved $256 million funding to drill an additional appraisal well (3DEL) in the Trion field offshore Mexico.

The 3DEL appraisal well and studies are meant 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,” Pastor said.

The 3DEL appraisal well is expected to be drilled in the second half of 2019.

BHP holds a 60 percent interest (and operatorship) in Trion while PEMEX holds a 40 percent interest.


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