BHP Commits to Trinidad's Ruby Project
Australian explorer BHP has approved a $283mn investment in the Ruby oil and gas project in Trinidad & Tobago, it said August 8. The total cost will be $500mn for all shareholders.
Ruby is in the Block 3(a) development area of Trinidad & Tobago and provides an opportunity for operator BHP to safely deliver value by producing resources in the Ruby and Delaware reservoirs. The project consists of five production wells tied back utilising the latent capacity of the existing processing facilities, proven technology of the existing operated asset, and newly acquired ocean bottom node seismic imaging.
The project has estimated recoverable 2C resources of 13.2mn barrels of oil and 274bn ft³ natural gas. First production is expected in 2021 and is estimated to increase production by about 16,000 b/d oil and 80mn ft³/d of gas at plateau, at 100%.
BHP said: “This is an important milestone for BHP in Trinidad & 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% interest, and Heritage Petroleum and the National Gas Company of Trinidad & Tobago (NGC) hold 20.13% and 11.41% respectively. The Block 3(a) joint operating agreement requires at least two parties and 65% of the working interest to approve the investment.