BHP has approved $US283 million ($415.73 million) in funding to develop the Ruby oil and gas project in Trinidad and Tobago.
The project is in the Block 3(a) development area of Trinidad and Tobago and provides an opportunity for BHP to safely deliver value by producing resources in the Ruby and Delaware reservoirs.
BHP has committed to a total investment of $US500 million for the project, which consists of five production wells tied back utilising the latent capacity of existing processing facilities and newly acquired ocean bottom node seismic imaging.
The Ruby project has estimated recoverable 2C resources of 13.2 million barrels of oil and 274 billion cubic feet of natural gas.
First production is expected in the 2021 calendar year. The project is forecast to increase production by around 16,000 barrels of oil per day and approximately 80 million standard cubic feet per day at its peak.
BHP president operations petroleum Geraldine Slattery said: “This is an important milestone for BHP in Trinidad and Tobago. Ruby aligns well with our strategy of maximising value from our existing assets, bringing competitive near-term value and volume growth.”
BHP holds a 68.46 per cent interest, with Heritage Petroleum and the National Gas Company of Trinidad and Tobago holding the remaining 20.13 per cent and 11.41 per cent interest, respectively.
The Block(3a) joint operating agreement requires at least two parties and 65 per cent of the working interest to approve the investment.