While production rose by 5% on the previous corresponding quarter, it is expected to grow even more substantially in the current year as Atlantis and Genghis Khan ramp up.
“Continuing ramp-up of production from these projects and future expansions will enhance our net long energy position at a time of historically high energy prices,” BHP said.
In petroleum liquids (oil, condensate and natural gas liquids), December half and quarterly production rose due to the start up of new projects and continued success in infill and development drilling programs, according to BHP.
“This, combined with continued strong facility uptime, completely offset the effect of natural field decline,” the corporation said.
This natural field decline was evident in Bass Strait, where 6.741 million barrels were produced in the December half, down from 7.158MMbbl in the previous corresponding half. The group’s United Kingdom and Algerian liquids production also declined.
In natural gas, record half-year production was achieved due to strong performance in Bass Strait and at the North West Shelf, both in Australia, and in the remainder of the global portfolio.
“The improved facility uptime across all operations also allowed us to capture the benefit of stronger demand for gas in Australia and Pakistan,” BHP said.
The corporation said a steady increase in the total production profile was expected in the second half of the 2008 financial year due to the contribution of high-margin output from Atlantis and Genghis Khan in US Gulf of Mexico waters and from Stybarrow in Australia.
Each of these projects was commissioned in the December quarter. BHP Billiton’s share of production from Atlantis during that quarter was 615,000 barrels of oil and 120 million cubic feet of gas.
Genghis Khan, which is part of the Shenzi area project, produced 32,000bbl and 10 million cubic feet of gas for BHP in the last quarter.
Since its start-up in late November, two months ahead of schedule, Stybarrow has achieved nameplate capacity and has produced 2.5MMbbl (BHP share).
