The Board of BHP has approved US$283 million in funding to develop the Ruby Project in Trinidad and Tobago.
A statement from the energy company on Thursday noted that the total investment for the oil and gas project, including pre-commitment capital, is approximately US$500 million.
The Ruby Project is located in the Block 3(a) development area of Trinidad and Tobago and provides an opportunity for BHP to safely deliver value by producing resources in the Ruby and Delaware reservoirs.
The project consists of five production wells tied back utilising 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).
First production is expected in 2021 and is estimated to increase production by 16,000 barrels of oil per day (bop/d) and 80 million standard cubic feet per day (MMscf/d) gross at its peak.
BHP President Operations Petroleum, Geraldine Slattery, said, “This is an important milestone for BHP in Trinidad and Tobago. Ruby aligns well with our strategy of maximising value from our existing assets, bringing competitive near term value and volume growth.”
BHP, as the Operator, holds a 68.46 percent interest, and Heritage Petroleum and the National Gas Company of Trinidad and Tobago (NGC) hold the remaining 20.13 percent and 11.41 percent interest, respectively.
The Block 3(a) Joint Operating Agreement requires at least two parties and 65 percent of the working interest to approve the investment.
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