The company, with co-venturers Hess and Repsol YPF, acquired its interest in Genghis Khan from Anadarko Petroleum in February 2007 for US$1.33 billion ($583 million net to BHP Billiton).

Production began from a single well connected to a subsea manifold on Green Canyon Block 652. Drilling has begun on the second well, which will be completed immediately following drilling operations.

This will be followed by two additional wells, one of which is slated to test Green Canyon Block 608, according to BHP.

“Production from these blocks is transported to a third-party owned and operated facility where it is processed and sent via existing pipelines to markets onshore Texas and-or Louisiana,” the company said.

“The oil is sold as a blend, commingled with crude oils from other pipeline shippers.”

The Genghis Khan development is in water about 1300m deep on the western flank of the Shenzi structure, which is on adjacent blocks.

The Shenzi project is being developed by the same co-venturers. BHP is operator of both projects and holds a 44% interest in the six-block unit (Green Canyon blocks 608, 609, 610, 652, 653 and 654). Hess and Repsol each own 28%.

BHP Billiton Petroleum chief executive J Michael Yeager said the development and production of Genghis Khan was giving the company early lessons and synergy with its Shenzi project and expanding its ownership of operated infrastructure in this region.

"This project allows us to optimise the development of the reserves at Shenzi-Genghis Khan, providing flexibility in selecting well locations, production facilities and the pace of development to capture the most value possible over the expected 25- to 30-year life of the field," Yeager said.

Genghis Khan is one of three fields BHP Billiton has in development in the deepwater Gulf of Mexico and is scheduled for first production in 2007.

The Atlantis and Neptune fields, also in the Western Atwater Foldbelt region of the Gulf of Mexico, are expected to start production by the end of December.

Combined, these three projects will boost BHP’s net oil production in the region to more than 100,000 barrels per day, the company said. In the 12-month period ending June 30, BHP’s Gulf of Mexico production was about 12,000bpd.