BHP's 9M Gas Output Down 10%
Anglo-Australian multinational BHP's natural gas production during the nine months to March 31 (9M 2020) dropped 10% yr/yr to 270bn ft3, it said April 21 in a statement.
The company said the drop is because of a decrease in tax barrels at Trinidad and Tobago, maintenance at North West Shelf, reduced domestic gas sales in Western Australia, and natural field decline across the portfolio. Output during the three months to March 31 (Q3 2020) was 81bn ft3, down 13% yr/yr.
BHP said the Bass Strait West Barracouta project, offshore Victoria, is tracking to plan and is expected to achieve the first production in the 2021 calendar year.
The company added that in light of the recent disruption to oil and gas markets and heightened risk of interruption to field activity, it is reviewing its capital, operating, exploration and appraisal expenditure programmes.
BHP said it will defer US$200mn in oil and gas exploration and development spending in FY2021 which it said was equivalent to 30% of its usual budget. “These actions will result in the deferral of production in the 2021 and 2022 financial years, however the reduction in capital projects across the sector may provide the opportunity to further enhance the cost competitiveness of these options,” it said.