Last Updated on October 20, 2020, 8:27 AM AST by Anthony Morris
UK-Australian resources firm BHP produced 8.8pc less oil and gas in July-September compared with a year earlier, reflecting natural field decline across its upstream portfolio in the US Gulf of Mexico, Australia and Trinidad and Tobago.
The company said that it is still on track to achieve its guidance for July 2020 to June 2021 fiscal year.
Total crude, condensate, natural gas liquids (NGL) and natural gas output fell to 290,000 b/d of oil equivalent (boe/d) in July-September from 318,000 boe/d a year earlier but was mostly unchanged from 289,000 boe/d in April-June.
BHP in July forecast its production would fall to 260,000-279,000 boe/d in 2020-21 from 298,000 boe/d in 2019-20.
The year-on-year decline in production also reflected the impact of tie-in and commissioning activities at the latest expansion of the Atlantis oil and gas field in the US Gulf of Mexico.
This was partially offset by an earlier-than-scheduled start of production from the phase-three project, in July.
Output at the Shenzi oil field in the US Gulf of Mexico was hit by planned maintenance, while US Gulf of Mexico production was curbed at the end of the quarter in the lead-up to Tropical Storm Laura.
BHP’s natural gas production fell by 9pc year on year because of lower output in Trinidad and Tobago, as well as end-of-field life at Minerva offshore Victoria.
Domestic gas sales also fell at the company’s other operations offshore Australia, including the Bass Strait and the 16.3mn t/yr North West Shelf (NWS) LNG venture. Output at NWS LNG venture was affected by adverse weather. But domestic gas sales rose at the company’s Macedon operations in the Carnarvon basin offshore Western Australia.
BHP plans to complete its purchase of a 28pc stake in the Shenzi field by the end of this year, increasing its stake to 72pc. The transaction date was set on 1 July, so BHP’s total output in July-September will be revised once the purchase is completed.
Anthony Morris covers stories related to politics and regional developments. His in-depth reporting about governance and reforms makes him stand out in regional journalism, with a deep analysis of political trends and their impact on Caribbean communities.
