BHP Approves Funding for Atlantis Phase 3 Project

BHP Approves Funding for Atlantis Phase 3 Project

BHP holds a 44-percent interest in the Atlantis field, while London-based BP possesses a 56-percent stake. 

The board of directors of international mining major BHP (ASX:BHP,NYSE:BHP,LSE:BLT) has approved US$696 million to fund the development of the Atlantis Phase 3 project in the US Gulf of Mexico.

BHP holds a 44-percent interest in the Atlantis field, while London-based BP (LSE:BP,NYSE:BP) possess a 56-percent stake.

The BHP approval follows a BP announcement from January, where the company reported the discovery of additional oil prospects in the Gulf of Mexico, some of which are included in the Atlantis field.

According to BP, the project will cost US$1.3 billion, of which BHP has pledged US$696 million.

Located 130 miles off the coast of Louisiana, Atlantis Phase 3 is a subsea tie back of eight new production wells that will be drilled to access the infill resource opportunities.

The joint venture plans to utilize the existing infrastructure, production ullage and marketing agreements, with first production pegged to commence in the 2020 calendar year.

“The Atlantis Phase 3 project provides a competitive opportunity to deliver on our strategy to grow resources in tier 1 conventional deep-water assets. The project will further expand the Atlantis field and will provide cost-efficient, near-term volumes,” Steve Pastor, BHP’s president of operations petroleum, said in the announcement.

The project will be steadily ramped-up by 38,000 barrels of oil equivalent per day gross at its peak.

In addition to the multi-million dollar investment in Atlantis, the BHP board also approved US$256 million to fund the drilling of an additional appraisal well (3DEL) in the Trion field located in Mexico.

The money will also be used to further study and delineate the scale and characterization of the resource.

“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,” said Pastor.

BHP is the majority stake holder and operator of Trion with a 60-percent interest; while PEMEX, the Mexican state-owned petroleum company, holds the remaining 40 percent.

BHP expects the 3DEL appraisal well to be drilled in the latter half of this year.

Shares of BHP were up 1.23 percent on Wednesday, to US$51.84.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Hastings Technology Metals Ltd Measured and Indicated Mineral Resource Tonnes Up by 54%

Perth, Australia (ABN Newswire) – Australia’s next rare earths producer, Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM), is pleased to announce a material increase in Mineral Resource Estimate at its Yangibana Rare Earths Project (Yangibana) in Western Australia’s Gascoyne region.


– Measured and Indicated Mineral Resource tonnes increased by 54% to 16.3Mt for Yangibana deposits drilled during 2020.

Keep reading... Show less

ASI certifies Rio Tinto’s ISAL smelter for responsible production

Rio Tinto’s ISAL smelter in Iceland has been certified by the Aluminium Stewardship Initiative (ASI) for meeting the highest internationally recognised standards for responsible aluminium production.

The certification continues Rio Tinto’s leadership of the industry on responsible aluminium production from mine to metal, and means customers can be assured aluminium produced at ISAL meets independent environmental, social and governance standards.

Keep reading... Show less

Rio Tinto updates details of tailings facilities

Rio Tinto today released updated information in relation to its global tailings facilities to align with the requirements of the Global Industry Standard for Tailings Management (GISTM) released in August 2020, an initiative co-convened by the International Council on Mining and Metals, United Nations Environment Programme and the Principles for Responsible Investment.

The latest disclosure at builds on previously disclosed information on each of Rio Tinto’s global tailings facilities released in June 2019 and the publication of Rio Tinto’s Group Procedure and updated Standard for ‘Management of tailings and water storage facilities’ in February 2019. The changes to existing data are in line with guidance contained in GISTM including updating information previously disclosed.

Keep reading... Show less

Hastings Technology Metals Ltd Quarterly Activities Report

Perth, Australia (ABN Newswire) – Australia’s next rare earths producer, Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM) is pleased to report on exploration and development activities for the three-month period to 31st March 2021. Most of the activity focused on the Company’s Yangibana Rare Earths Project (“Yangibana”) in the Gascoyne region of Western Australia.


– Hastings raised $100.7 million (before costs) through a two-tranche equity placement priced at $0.19 per share, with funds to be used to advance development of the Yangibana Rare Earths Project.

Keep reading... Show less

Argyle Diamond Mine Closure: What’s Next for the Sector in Australia?

Click here to read part one of this article, which covers the closure of the Argyle diamond mine.

When the mining equipment permanently shut down at Western Australia's Argyle mine in November 2020, the country's diamond sector entered a transitional period.

As the world's fourth largest diamond-producing asset shuttered, domestic output of the gems instantly declined by as much as 90 percent.

Keep reading... Show less

Top News

Related News