MELBOURNE, Australia– The BHP board has approved $696 million in funding to develop the Atlantis Phase 3 project in the deepwater US Gulf of Mexico.
This follows sanction by operator BP in January.
Atlantis Phase 3 is about 130 mi (208 k) offshore Louisiana. The project is a subsea tieback of eight new production wells that will be drilled and completed to access infill resource opportunities. It will take advantage of existing infrastructure, production ullage, and marketing agreements.
First production is expected in the 2020 calendar year and is estimated to increase production by ~38,000 boe/d gross at its peak.
BHP holds a 44% interest in the Atlantis field. BP holds a 56% interest.
Steve Pastor, BHP President Operations Petroleum, said: “The Atlantis Phase 3 project provides a competitive opportunity to deliver on our strategy to grow resources in Tier 1 conventional deepwater assets. The project will further expand the Atlantis field and will provide cost-efficient, near-term volumes.”