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BHP gives $283m nod for Ruby

Operator to move forward with development of oil and gas field off Trinidad & Tobago

Australian mining giant BHP has elected to move forward with its Ruby project on Block 3(a), offshore Trinidad & Tobago.

The company’s board on Thursday approved US$283 million in funding to develop the oil and gas field via five production wells which will be tied back to BHP’s existing Angostura platform.

It added that the total gross cost of the development, including pre-commitment capital, was expected to be about US$500 million.

“This is an important milestone for BHP in Trinidad & Tobago,” BHP’s president of petroleum operations, Geraldine Slattery, said.

“Ruby aligns well with our strategy of maximising value from our existing assets, bringing competitive near term value and volume growth.”

Ruby is believed to hold 13.2 million barrels of oil and 274 billion cubic feet of gas in best estimate contingent resources.

First output is expected in 2021 and, at its peak, is anticipated to reach 16,000 barrels of oil per day and 80 million cubic feet of gas per day.

Under the Block 3(a) joint operating agreement, approval of the investment requires at least two parties and that hold at least 65% of the working interest.

With BHP holding a 68.46% operated interest in Ruby, it will only require one of its partners to approve the investment with Heritage Petroleum or the National Gas Company of Trinidad & Tobago (NGC) holding a 20.13% and 11.41% interest, respectively.

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