BHP allocates nearly $700 million for Atlantis project in Gulf of Mexico

BHP, formerly known as BHP Billiton, has approved $696 million in funding to develop the Atlantis Phase 3 project in the US Gulf of Mexico.

This follows sanction by BP, as the operator, of the Atlantis Phase 3 project, announced in January 2019.

Atlantis Phase 3 is located in the deepwater Gulf of Mexico, approximately 130 miles (208 kilometers) off the coast of Louisiana. The project is a subsea tie back of eight new production wells that will be drilled and completed to access infill resource opportunities and tied into the current platform. It will take advantage of existing infrastructure, production ullage and marketing agreements.

First production is expected in the 2020 calendar year and is estimated to increase production by ~38,000 barrels of oil equivalent per day (boe/d) gross at its peak.

BHP President Operations Petroleum, Steve Pastor, said: “The Atlantis Phase 3 project provides a competitive opportunity to deliver on our strategy to grow resources in Tier 1 conventional deepwater assets. The project will further expand the Atlantis field and will provide cost-efficient, near term volumes.”

BHP holds a 44 per cent interest in the Atlantis field and BP holds a 56 percent interest.

BP has already awarded an integrated engineering, procurement, construction and installation (iEPCI) contract for the Atlantis Phase 3 project to TechnipFMC, which will manufacture, deliver and install subsea equipment, including subsea tree systems, manifolds, flowline, umbilicals and subsea tree jumpers, pipeline end terminations, subsea distribution and topside control equipment.