Billiton

Two big-ticket acquisitions in the Fayetteville Shale by BHP Billiton Petroleum and XTO Energy Inc. suggest that the pace of development in the play will be accelerating, acknowledged Steve Mueller, CEO of Fayetteville veteran Southwestern Energy Co. But his company can hold its own, having locked in some of its costs and beaten down drilling times, Mueller said.

Australian producer BHP Billiton received the first permit from the Bureau of Energy Management, Regulation and Enforcement (BOEM) to drill in the deepwater Gulf of Mexico since the moratorium was lifted in mid-October, analysts for Tudor, Pickering, Holt & Co. Securities Inc. (TPH) said last Wednesday. But it’s not a sign that more deepwater permits are immediately around the corner, cautioned FBR Capital Markets.

But it’s not a sign that more deepwater permitting is immediately around the corner, says FBR Capital Markets.

StatoilHydro has added to its sizable stake in the Gulf of Mexico (GOM) by acquiring a 40% interest from BHP Billiton Ltd. in 50 offshore blocks. The offshore acreage acquired by the Norwegian-based producer is located in the northeastern corner of the deepwater GOM in the under-explored DeSoto Canyon. DeSoto Canyon is located east of the Independence Hub, which serves several natural gas producers in the region, including Statoil (see NGI, Dec. 25, 2006). Statoil, among other things, owns a quarter stake in Walker Ridge Block 758, located in the promising Lower Tertiary of the deepwater GOM. In 2006 Statoil, Chevron Corp. and Devon Energy Corp. completed the deepest extended drill stem test in history at the prospect on Jack No. 2 well (see NGI, Sept. 11, 2006). In the March Central GOM Lease Sale 208, U.S.-based subsidiary Statoil Gulf of Mexico LLC was high bidder at $14.29 million for Keathley Canyon Block 698, which is located in water depths more than 2,000 feet (see NGI, March 23).

After discovering “structural anomalies” in late March at its oil and natural gas Neptune tension leg platform (TLP) in the Gulf of Mexico, BHP Billiton said it is performing remediation work to reinforce certain structural components in the hull’s pontoons.

After discovering “structural anomalies” in late March at its oil and natural gas Neptune tension leg platform (TLP) in the Gulf of Mexico, BHP Billiton said Monday it is performing remediation work to reinforce certain structural components in the hull’s pontoons.

Australian producer BHP Billiton has begun assessing how to repair its Neptune tension leg platform (TLP) in the deepwater Gulf of Mexico (GOM) after discovering “structural anomalies” last week.

The three-member California State Lands Commission Monday rejected the environmental impact statement and report (EIS/EIR) for BHP Billiton’s proposed offshore liquefied natural gas (LNG) receiving terminal, Cabrillo Port, 14 miles out to sea from Ventura County along the Southern California coast. The 2-1 vote puts a potentially fatal roadblock in front of the $550 million project, although the action could be overturned by a court appeal.

The Neptune deepwater project has been given the green light by partners Marathon Oil (30%), BHP Billiton (35% and operator), Woodside Petroleum (20%) and Maxus (US) Exploration, a subsidiary of Repsol YPF with a 15% stake. The project is expected to produce 50,000 boe/d, including up to 50 MMcf/d of natural gas, starting in late 2007.