BHP's Full Year Gas Output Drops 9%
Anglo-Australian multinational BHP's natural gas production during the 12 months to June 30 (FY2020) dropped 9% yr/yr to 360bn ft3, the company said on July 21 in a statement.
BHP said gas output dropped “reflecting a decrease in both production and tax barrels due to weaker market conditions in Trinidad and Tobago, impacts of maintenance and tropical cyclone Damien at North West Shelf and natural field decline across the portfolio.” The average realised gas price during the year declined 11% yr/yr.
BHP said that the Bass Strait West Barracouta project is on schedule and budget, and is still expected to achieve first production in the 2021 calendar year, despite delays in component delivery and equipment fabrication due to Covid-19 restrictions.
“Additional measures have been put in place across each of our projects to protect workforce health and safety as a result of Covid-19. All projects currently in execution remain on track and we do not expect an impact on the timing of first production,” the company said.
Due to the recent significant disruption to oil and gas markets and risk of interruption to field activity, BHP has reviewed its capital, operating, exploration and appraisal expenditure programmes. It will provide updated capital and exploration expenditure guidance for FY2021 with its full year results announcement to be released on August 18.