BHP Billiton discovered oil at its Caicos exploration well in the deepwater Gulf of Mexico, and revealed plans to drill at a nearby well in November.
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Map of Central GoM, including Caicos, Shenzi North, and Wildling. From BHP. |
Caicos is in Green Canyon 564, about 100mi south of Louisiana.
The Caicos well was drilled to 30,803ft total depth, and encountered oil in multiple Miocene horizons, the Australian company said.
“We are encouraged by the Caicos results and are moving to further appraise the area,” Steve Pastor, BHP Billiton president operations petroleum said at an investor briefing in London today (5 October).
BHP Billiton also outlined its broad range of opportunities within its petroleum business to grow value, returns and cash flow as markets improve.
“The next step will be drilling the Wildling well in November. With success at Caicos and Shenzi North, we continue to be optimistic around the opportunity for a commercial development in the area,” Pastor said.
BHP also said in its presentation to investors that it expects to make its investment decision for the BP-operated Mad Dog 2 in the next six months.
“We have a rich portfolio of brownfield project options, with total capital expenditure of US$2.5 billion and an average IRR of 45% that will help offset field decline. With significant improvements in capital efficiency, major capital projects like Mad Dog 2 are now economically attractive, even below $50 per barrel of oil,” Pastor said.
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