BHP's US liquids growth

BHP Billiton has registered growth in its December 2012 half-yearly petroleum production of 11% to 121.15 million barrels of oil equivalent compared to the same period in 2011, but its production dipped by 2% quarter-on-quarter to 59.9MMboe.
BHP's US liquids growth BHP's US liquids growth BHP's US liquids growth BHP's US liquids growth BHP's US liquids growth

The half-year result was driven by a 4% growth in liquids production, while it also registered a 15% jump in gas production.

However, the story was different quarter-on-quarter, with BHP recording an overall 2% contraction in petroleum production, although its liquids component did jump up by 4% to 23.3 million barrels.

The growth in liquids was down to continued growth of its US onshore drilling business, while development drilling at the Shenzi field and a full quarter contribution from both the Mad Dog and Atlantis facilities also helped.

It said its US business had registered a record liquids production figure of 48,000 barrels per day, with drilling in the liquids-rich parts of the Eagle Ford shale and Permian expected to drive further growth in the 2013 financial year.

It said it spent a total of $US2.1 billion ($A1.99 billion) on its onshore business during the half year, and said its FY2013 guidance remained unchanged at $4 billion.

Petroleum boss Michael Yeager in particular will be hoping the liquids story gains traction with investors after a well-publicised write-down in the value of its Chesapeake assets last year led to him forgoing a bonus and harsh criticism of the company for "buying at the top of the market".

Meanwhile, its gas production dove during the quarter, down 6% quarter-on-quarter with BHP telling the market this morning that this was driven by a seasonal reduction in demand for gas from its Bass Strait projects.

It left its FY2013 production guidance unchanged at 240MMboe.


Most read Regions

  • NEW: Digital version of PNG Report magazine - View here
  • Porgera: Barrick-PNG talks go on - Read more
  • Follow the companies investing in the PNG market - Read more

Most read Regions