BHP H1 Output Drops 7% on Year
Australia miner and oil and gas producer BHP Billiton January 18 said its total petroleum production for July to December 2017, the first half of its reporting year, fell by 7% to 99mn barrels of oil equivalent.
Total natural gas production was 325bn ft3 (9.2bn m3) during the July-December 2017 period, down 6% year on year. Of that, BHP said the conventional natural gas output was 203bn ft3, down 1% year on year while US shale gas output was 122bn ft3, down 14%. The company attributed its US gas production decline to the impact of Hurricane Harvey and natural field declines, partially offset by additional wells put online in the Eagle Ford, Permian and Haynesville shales.
Average natural gas price during July-December 2017 was $3.54/mn ft3 ($3.61/mn Btu), compared with $3.21/mn ft3 during the same 2016 period.
Production guidance for the July 2017-June 2018 year remains unchanged at between 180 and 190mn boe, comprising 119mn to 123mn boe conventional volumes and 61mn to 67mn boe onshore US volumes.
Petroleum capital expenditure of approximately $1.9bn is now planned for the same period, a reduction from previous guidance of $2bn, BHP said. Onshore US capital expenditure is expected to be lower at $1.1 bn, reflecting development activity tailored to support value in the exit process and meet Hold by Production obligations.