Page 93 - Annual Report 2020

1.9.4 Petroleum 1

Conventional petroleum
BHP has owned oil and gas assets since the 1960s.

We have a world-class portfolio of high-margin conventional assets located in the US Gulf of Mexico, Australia, Trinidad and Tobago, and Strategic Report
Algeria, as well as appraisal and exploration options in Mexico, deepwater Trinidad and Tobago, western Gulf of Mexico, Eastern Canada
and Barbados. Our conventional petroleum business includes exploration, appraisal, development and production activities. We produce
crude oil and condensate, gas and natural gas liquids (NGLs) that are sold on the international spot market or delivered domestically under
contracts with varying terms, depending on location of the asset.
Our conventional petroleum business responded effectively to COVID-19, despite global market impacts in the second half of FY2020 as
petroleum demand reduced due to collapsing transport activity. As always, the safety of our people came first and additional measures
were put in place across each of our assets and projects to protect the health and safety of our workforce. All assets remained in operation
as a result of these measures and through partnering with our communities, suppliers and contractors. Despite supply chain delays,
all projects currently in execution remain on track to meet first production guidance. Governance at BHP

New Orleans
LOUISIANA

Gulf of Mexico Remuneration Report

Shenzi Neptune

Atlantis
United States Mad Dog Directors’ Report

BHP acreage

Petroleum

United States
Gulf of Mexico Financial Statements
Overview Key developments during FY2020
Our US Gulf of Mexico assets are large, long-life and expandable. The Mad Dog Phase 2 project, located in the Green Canyon area of
We operate two fields in the US waters of the Gulf of Mexico – the deepwater US Gulf of Mexico, successfully progressed through
Shenzi (44 per cent interest) and Neptune (35 per cent interest). FY2020 and remains on track for first production in CY2022. Mad
Dog Phase 2 is an extension of the existing Mad Dog field and is
We hold non-operating interests in two other fields – Atlantis one of the largest discovered and undeveloped resources in the
(44 per cent interest) and Mad Dog (23.9 per cent interest). Gulf of Mexico. The project builds on the successful Mad Dog
All our producing fields are located between 155 and 210 kilometres South appraisal well, which confirmed significant hydrocarbons
offshore from the US state of Louisiana. We also own 25 per cent in the southern portion of this field, and will include a new floating
and 22 per cent, respectively, of the companies that own and production facility with the capacity to produce up to 140,000
operate the Caesar oil pipeline and the Cleopatra gas pipeline. gross barrels of crude oil per day from up to 14 production wells. Additional information
These pipelines transport oil and gas from the Green Canyon area, The Atlantis Phase 3 project, also located in the Green Canyon area,
where our US Gulf of Mexico fields are located, to connecting remained on schedule and on budget, achieving first production
pipelines that transport product onshore. in July 2020. This project includes a subsea tie back of eight new
production wells accessing infill resource opportunities identified
through seismic imaging. Atlantis Phase 3 is expected to increase
production by an estimated 38,000 gross barrels of oil
equivalent per day at its peak.
For more information on Mad Dog Phase 2 and Atlantis
Phase 3, refer to section 6.5. Shareholder information

BHP Annual Report 2020 91