Tuesday, December 7, 2021

BHP encounters hydrocarbons at Calypso appraisal well in Trinidad

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BHP Group Ltd. said on Tuesday that it encountered hydrocarbons at the Calypso appraisal well Bongos-3 in Trinidad and Tobago and that it plans to perform other well operations as part of the drilling programme.

“In Petroleum, the Calypso appraisal well Bongos-3 in Trinidad and Tobago spud on 27 July 2021 and encountered hydrocarbons. A side track is currently being drilled to complete the appraisal,” the company said in an operational review for the quarter ending September 30.

The formation evaluation program for Bongos-3 was completed on September 18. The Bongos-4 well was spud on August 6 and is currently suspended, with operations due to recommence following the completion of Bongos-3X operations.

BHP said its major projects under development are tracking to plan, with two new projects, the Jansen Stage 1 potash project and the Shenzi North development project in the US Gulf of Mexico, approved during the September 2021 quarter. The Jansen shaft project is 96% complete, and the Trion oil project in Mexico moved into the Front-End Engineering Design (FEED) phase and is expected to progress to a Final Investment Decision from mid-calendar year 2022.

The announced agreement to pursue a proposed merger of the company’s Petroleum business with Woodside to create a global top 10 independent energy company is progressing to plan, with full form transaction documents expected in November 2021. Following receipt of all approvals, the merger is expected to be completed in the second quarter of the 2022 calendar year with an effective date of July 1, 2021. An integration team with representatives from both companies has been established and is progressing integration planning activities, which includes developing a path to unlock estimated synergies of more than US$400 million per annum.

“BHP’s operations delivered reliably during the first quarter, and we completed planned major maintenance activities across a number of our assets. We continue to skillfully navigate the ongoing challenges of COVID-19,” said BHP’s Chief Executive Officer, Mike Henry.

BHP said petroleum exploration expenditure for the September 2021 quarter was US$87 million, of which US$35 million was expensed. An approximate US$540 million exploration and appraisal program is being executed for the 2022 financial year.

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