BHP Group approves funding for Shenzi North and Trion oil projects

(Alliance News) - BHP Group PLC on Thursday said it has approved USD544 million in capital ...

Alliance News 5 August, 2021 | 2:24PM
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(Alliance News) - BHP Group PLC on Thursday said it has approved USD544 million in capital expenditure to execute the Shenzi North oil project in the US Gulf of Mexico.

BHP is operator and holds a 72% interest in Shenzi North. Repsol holds the remaining 28% working interest and is expected to make a final investment decision later in 2021.

The Melbourne, Australia-based miner said the project will take advantage of existing infrastructure and production capacity in the nearby Shenzi production facility. The project adds two wells and subsea equipment to establish a new drill centre north of Shenzi with the capacity to produce up to approximately 30 million barrels of oil equivalent per day. Production is expected to begin in the 2024 financial year.

In addition, BHP said it has also approved USD258 million in capital expenditure to move the Trion oil project in Mexico into the front end engineering design phase.

BHP holds a 60% interest and operatorship of blocks AE-0092 and AE-0093 containing the Trion discovery. PEMEX Exploration & Production Mexico holds a 40% interest in the blocks.

The focus of these studies at Trion project will be on completion of the engineering, commercial arrangements and execution planning required to progress to a final investment decision from mid-2022.

Geraldine Slattery, BHP president of Operations Petroleum, said: "Both Shenzi North and Trion are strong growth assets for our business, providing attractive returns from relatively low carbon intensity resources."

BHP Group shares were trading 3.7% lower in Johannesburg on Thursday at ZAR456.53 each, while in London, the stock was down 4.0% at 2,276.50 pence a share.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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