The Lemon Fool

The BHP Board has today approved US$696 million (BHP share) in funding to develop the Atlantis Phase 3 project in the US Gulf of Mexico. This follows sanction by BP, as the Operator, of the Atlantis Phase 3 project, announced in January 2019.

Atlantis Phase 3 is located in the deepwater Gulf of Mexico, approximately 130 miles (208 kilometres) off the coast of Louisiana. The Project is a subsea tie back 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 barrels of oil equivalent per day (boe/d) gross at its peak.

BHP President Operations Petroleum, Steve Pastor, 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."

Darka wrote:The Gulf of Mexico always makes me nervous now

idpickering wrote:I hold BLT, and am glad they diversify their business. A core holding in my HYP.

Ian.

simoan wrote:FYI the ticker has now changed to BHP since the name change. ...

"Bacon, Lettuce and Tomato" ticker

PrincessB wrote:

"Bacon, Lettuce and Tomato" ticker

Me too.

That said, Broken Hill Proprietary is also a stylish name.

Dod101 wrote:Funnily enough I have just been visiting Perth, WA and emblazoned on the top of their Building I that City they have BHPBilliton still. (The capitals may not be quite correct) It is also incorporated in Melbourne.

Dod

simoan wrote:

idpickering wrote:I hold BLT, and am glad they diversify their business. A core holding in my HYP.

Ian.

FYI the ticker has now changed to BHP since the name change. Shame as I had a soft spot for the old "Bacon, Lettuce and Tomato" ticker

All the best, Si

With safety as our highest priority, BHP Port and Rail Operations in Port Hedland, Western Australia, are ramping-up after being suspended due to Tropical Cyclone Veronica. While initial inspections show no major damage to our operations, isolated flooding both on site and sections of the rail leading into the port has limited train movements. Consequently, the port is currently operating at reduced rates and not expected to return to full capacity until later this month.

Our preliminary estimate of the impact of Tropical Cyclone Veronica is a reduction in production of approximately 6 to 8 million tonnes (100 per cent basis), and as a result, our 2019 financial year production and unit cost guidance are currently under review.

Final production impacts and revised production and unit cost guidance will be disclosed once they are finalised.

We are engaging with our customers and intend to meet our contractual commitments.

Production guidance for the 2019 financial year remains unchanged for petroleum, copper, metallurgical coal and energy coal. Iron ore production guidance decreased to between 265 and 270 Mt (100% basis), reflecting impacts of Tropical Cyclone Veronica.
• Group copper equivalent production(1) was broadly unchanged over the nine months ended March 2019, with volumes for the full year also expected to be in line with last year.
• Full year unit costs for Petroleum, Escondida and Queensland Coal are expected to be in line with guidance(2). Unit costs for Western Australia Iron Ore are now expected to be below US$15 per tonne(2), reflecting impacts of Tropical Cyclone Veronica. Unit costs for New South Wales Energy Coal are now expected to be approximately US$51 per tonne(2) following changes to the mine plan.
• All major projects under development are tracking to plan.
• In Petroleum, the Atlantis Phase 3 project in the US Gulf of Mexico was approved and the Bélé-1 exploration well in Trinidad and Tobago encountered hydrocarbons (drilling still in progress) during the quarter.

BHP notes the media reports today concerning the group claim in the United Kingdom in relation to the Samarco dam failure on 5 November 2015.

BHP confirms that BHP Group Limited and BHP Group Plc have been served with legal proceedings filed in the Business and Property Courts of Liverpool, England.

BHP intends to defend the claim.