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BHP Billiton scores ultra-deepwater discovery Bell says Gulf of Mexico Chinook well results ‘very encouraging’ Petroleum News Houston staff
Australia’s BHP Billiton, the world's biggest mining company, said June 30 that it has made an oil discovery at its second exploratory well on the Chinook prospect in the ultra-deepwater Gulf of Mexico. It is the Melbourne-based company’s fourth discovery in the area in the past year and one of the deepest water locations yet drilled in the gulf.
Drilled in water depths of about 8,830 feet, the well exceeded a total depth of 27,650 feet, encountering a gross hydrocarbon column of 620 feet with 260 feet of net oil pay, BHP said. In BHP’s first well at Chinook the company failed to find commercial quantities of oil or gas. It was abandoned in January 2001.
The Chinook discovery is located more than 180 miles from the Louisiana coast on Walker Ridge Block 469, about 19 miles south of the previously announced Cascade discovery.
“This is a very encouraging result on a large structure,” said Steve Bell, BHP’s president of exploration and business development. However, he said more appraisal work must be done before Chinook reserves can be determined. Cascade appraisal well key The timing and location of further drilling at Chinook will also depend on the results of an appraisal well to be drilled later this year at the Cascade discovery, 18.6 miles north, said Tania Price, a BHP Billiton spokeswoman in Melbourne.
Chinook strengthens BHP’s inventory of operated discoveries in the gulf, including Shenzi, Cascade, Neptune and Vortex.
The company’s $1 billion Mad Dog oil field in the gulf is scheduled to start up late this year. In February BHP agreed to invest $1.1 billion to develop the Atlantis oil field.
BHP Billiton owns a 40 percent interest and is the designated operator of Chinook with Brazil’s Petrobras owning a 30 percent interest, and Total and Amerada Hess each holding a 15 percent interest.
BHP currently operates four offshore rigs worldwide.
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