Oil and gas industry news : BHP has approved $696 million funding for the Atlantis Phase 3 project, an offshore oil project in the US Gulf of Mexico to be developed with an investment of $1.3 billion.

BHP holds a 44% stake in the Atlantis Phase 3 project, located about 130 miles off the coast of Louisiana.

In January, the company’s partner BP, the operator of the Atlantis oil field, approved the phase 3 development of the deepwater field. BP holds the remaining 56% stake in the offshore oil project, which will be a subsea production system featuring eight new wells that will be tied into the current Atlantis platform.

The Atlantis Phase 3 project is slated to come on stream in 2020 with production expected to be increased by approximately 38,000 barrels of oil equivalent per day (Boe/d) gross at its peak.

Steve Pastor – BHP President Operations Petroleum said: “The Atlantis Phase 3 project provides a competitive opportunity to deliver on our strategy to grow resources in Tier 1 conventional deepwater assets. The project will further expand the Atlantis field and will provide cost-efficient, near term volumes.”

The Atlantis oil field, which has been in production since 2007, was discovered by BP in 1998. Its phase 3 development aims at exploiting an additional 400 million barrels of oil estimated to be present in the eastern portion of the Atlantis oil field.

In addition to the Atlantis Phase 3 project, BHP approved $256 million funding for drilling an additional Trion appraisal well – 3DEL at the Trion oil field offshore Mexico. The funding will also be used to undertake further studies in the Trion oil field to further delineate the scale and characterization of the offshore field.

The 3DEL appraisal well is likely to be drilled in the second half of this year.

BHP is the operator of the Trion oil field with a 60% stake with its partner being PEMEX, which holds the remaining 40% stake.

Steve Pastor, commenting on the Trion oil field said: “A further appraisal well at Trion, following the recent encouraging results at the 2DEL appraisal well, reduces investment risk and adds value to this project. If Trion is determined to be commercial, these funds will also provide an option to potentially accelerate development of Trion.”

  Atlantis oil field, Atlantis Phase 3 project, BHP, BP, Gulf of Mexico, Louisiana, Oil and gas industry news, Oil and gas news, Steve Pastor, US Gulf of Mexico