BHP Billiton confirms major oil discovery off Trinidad
Sydney (Platts)--4Dec2001
Anglo-Australian resources giant BHP Billiton Tuesday confirmed that "a significant oil resource" had been discovered at its 45%-held Canteen-1 exploration well offshore Trinidad. The well is the company's fourth commercial hydrocarbon discovery in the shallow waters off the east coast of Trinidad. Canteen-1 is located in block 2(c) in a water depth of 164 feet, about 1 mile (0.6 km) north of the previously announced Kairi-1 oil and gas discovery. "The Canteen well has demonstrated a lateral extension of the accumulation and further appraisal drilling will be required to define the level of reserves," BHP Billiton said. "This is an early stage of the appraisal program and the data so far indicates the accumulation is likely to be a multi-hundred million barrel discovery."
Confirmation of Canteen's significance follows comments on Nov 26 by BHP Petroleum president and CEO Phil Aiken, who indicated at a briefing that the find could be in the range 300-400-mil bbl. Canteen-1 was drilled to 7,070 feet and encountered around 700 gross feet of hydrocarbon bearing sands, including 200 feet of net oil pay and 179 feet of net gas pay. The well tested at 3,700 b/d of oil through a 72/64 inch choke. BHP Billiton said log and test data from the well indicated a high quality reservoir formation similar to that found in Kairi-1, which last month tested at 3,000 b/d through a 38/64 inch choke. Aiken said Tuesday that given the company's recent exploration success in the region, offshore Trinidad had "the potential to become a major hydrocarbon producing province."
Aiken added that the company would look to fast-track the Canteen development, which given the relatively shallow water and proximity to the coast, could be in production "within two to three years." Appraisal drilling would also continue to assess the extent of BHP Billiton's discoveries in Trinidad and determine reserve levels and development planning options. BHP Billiton holds 45% of block 2(c), which it operates. The company's partners in the block are TotalFinaElf, with 30%, and Talisman Energy, with 25%. The company is also involved in negotiations for a production sharing contract over the adjacent exploration block 3(a).
platts.com |
