Australia’s BHP has approved $283 million (BHP share) in funding to develop the Ruby project located offshore Trinidad and Tobago.
Total investment for the oil and gas project (including pre-commitment capital) is approximately $500 million (gross, 100 per cent basis), BHP said on Thursday.
The Ruby Project is located in the Block 3(a) development area of Trinidad and Tobago and provides an opportunity for BHP to deliver value by producing resources in the Ruby and Delaware reservoirs.
The project consists of five production wells tied back utilizing the latent capacity of the existing processing facilities, proven technology of the existing operated asset, and newly acquired ocean bottom node seismic imaging.
The project has Estimated Recoverable 2C Resources of 13.2 million barrels of oil (100 per cent basis) and 274 billion cubic feet of natural gas (100 per cent basis).
The first production is expected in 2021 and is estimated to increase production by about 16,000 barrels of oil per day (bop/d) and about 80 million standard cubic feet per day (MMscf/d) gross at its peak.
Geraldine Slattery , BHP President Operations Petroleum, said: “This is an important milestone for BHP in Trinidad and Tobago. Ruby aligns well with our strategy of maximizing value from our existing assets, bringing competitive near term value and volume growth.”
BHP, as the operator, holds a 68.46 per cent interest, and Heritage Petroleum and the National Gas Company of Trinidad and Tobago (NGC) hold the remaining 20.13 per cent and 11.41 per cent interest, respectively.
The Block 3(a) Joint Operating Agreement requires at least two parties and 65 per cent of the working interest to approve the investment.