The world’s largest diversified resources company said natural gas production increased 2% to a new record of 260.47 billion cubic feet (Bcf) during the nine-month period and rose 14% to 86.67Bcf in the March quarter.

However, Q1 oil production was down slightly to 10,671 barrels from 10,886 in the previous corresponding period. Year to date oil output also dropped from 34,322 to 33,725 barrels.

Total production of petroleum products climbed 6% during the quarter to 27.68 million barrels of oil equivalent and were up 1% at 85.53MMboe for the nine months to March.

“Natural field decline has been completely offset by operational improvements and no new operations commencing production during the period,” BHP said.

“Production was higher than the March 2006 quarter, mainly due to improved facility uptime, reduced weather impacts and increased gas sales.”

Also during the quarter, BHP said it has finalised acquisition of a 45% stake in the Genghis Khan oil and gas development in the Gulf of Mexico, which has a capacity of 55,000 barrels of oil per day.

The $365 million acquisition adds to BHP’s two other GoM projects, Atlantis and Neptune.