BHP Billiton commences first oil production in Gulf of Mexico
Global resource company BHP Billiton has announced the start of its oil production in the Gulf of Mexico following the lifting of deep-water drilling ban on the area imposed last year by US President Barack Obama.
The US government put in place a drilling moratorium in the area as a result of the Deepwater Horizon explosion in April 2010, which killed 11 rig workers and spewed million-gallons of oil that blanketed a huge chunk of the region.
BHP has reported on May this year that it won approval from authorities to re-commence its oil projects and exploration activities in the area, marking the occasion as the first oil company to obtain environmental clearance for its operations in the Gulf.
Apart from its first well, the SB-201, which came online in the latter part of May and currently produces 17,000 barrels of crude oil per day, BHP said in a statement on Tuesday that a new drilling permit for a second well has been granted to the firm.
The Australian resource firm added that drilling works on the new permit was started on June 2, which the company said will hopefully complement soon the output from SB-201, said to be the 11th active well in the oil-rich field.
BHP Billiton Petroleum chief executive Michael Yeager said that the company "has worked very hard over the past several months with regulators to have the ability to resume drilling operations and add new production to our deep-water Gulf of Mexico portfolio."
Yeager said that the Shenzi facility sits at around 195 kilometres from the Louisiana coastline and operates over an estimated 1300 meters depth of water.
BHP runs the field in partnership with two entities, with the Melbourne-based company dominating its operations with 44 percent equity interest on the business while its partners, Hess and Repsol, equally hold 28 percent interest each.