BHP production on track to rise despite quarterly fall

BHP’s petroleum production has been impacted by Tropical Storm Barry in the Gulf of Mexico and planned maintenance at its North West Shelf project in Western Australia.

This has caused a 1 per cent fall in BHP’s production on the June period, or an 11 per cent drop on the same corresponding period, to 29 million barrels of oil equivalent.

While the tropical cyclone has affected BHP’s crude oil, condensate and natural gas liquids production, the North West Shelf maintenance has hit the company’s natural gas production during the September quarter.

BHP also reported natural field decline across the portfolio. This was partially offset by higher uptime at the Pyrenees project in Western Australia following the 70 day dry dock maintenance during the same period last year, according to BHP.

“While group production for the quarter decreased slightly due to the expected impacts of planned maintenance and natural field decline in petroleum, guidance remains unchanged and we are on track to deliver slightly higher volumes than last financial year,” BHP chief executive Andrew Mackenzie said.

The Bass Strait West Barracouta project, offshore Victoria, is tracking to plan and expected to achieve first production in 2021.

BHP’s Mad Dog phase two project in the United States Gulf of Mexico is, meanwhile, 58 per cent complete on schedule and budget.

The floating production facility is set to produce up to 140,000 gross barrels of crude oil a day. BHP expects Mad Dog to deliver initial production in 2022.

Its newly approved Ruby project in Trinidad and Tobago is also 6 per cent complete and is scheduled for first production in 2021.

Ruby is targeted to produce up to 16,000 gross barrels of oil a day and 80 million gross standard cubic feet of natural gas a day.

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