BHP's Q1 Gas Output Falls 7% on year
BHP said October 18 that its natural gas output in the quarter ended September 30 (Q1 for BHP as it reports a July-June year) declined by 7% year on year to 169bn ft3 owing to the effect of hurricane Harvey on US production.
Conventional gas volumes for Q1 (July-September) were broadly unchanged at 107bn ft3. Onshore US gas volumes declined 17% year on year, reflecting both natural field decline and the impact of hurricane Harvey, which was partially offset by additional wells being brought on stream at Black Hawk, Permian and Haynesville, BHP said
BHP divested a small portion the Hawkville acreage during Q1 and said that work is now underway to exit the remaining onshore US assets.
In August, BHP chief executive Andrew Mackenzie had called all the company’s US shale interests "non-core" that are to be "exited”. BHP holds more than 838,000 net acres in four major US shale areas – Eagle Ford, Permian, Haynesville and Fayetteville – where it produces oil, condensate, gas and NGLs.
BHP’s total oil and gas production in Q1 was 50 mn barrels of oil equivalent, down 8% year on year. However, it has left production guidance unchanged for the full year at 180-190mn boe.
Shardul Sharma