BHP moves forward with Trion project in the Gulf of MexicoBy Antonio Trujillo | Fri, 08/13/2021 - 13:28
Australian company BHP has announced the approval of US$258 million in capital expenditure, to move the Trion oil project to the Front End Engineering Design (FEED) phase.
BHP has announced their Board of directors’ decision to push forward with the Trion project off the coast of Mexico, according to a company's press release. The approval, the company announced, comes as part of a long-term plan to reach a financial decision in mid-2022. Geraldine Slattery, BHP President, commented that “both Shenzi North and Trion are strong growth assets for our business, providing attractive returns from relatively low carbon intensity resources.”
In a strategic partnership with PEMEX, BHP owns 60 percent of the project while the NOC owns the remaining 40 percent. The other project currently undergoing in the region is Shenzi North, on the US side, for which a further US$544 million were approved by BHP, and now owns 72 percent of the project in capital expenditure. BHP is confident that the project will return attractive profits. In May, BHP informed that American Panamanian-based company McDermott had been awarded design contracts for the site through a contest that lasted over a year.
Moreover, Shenzi North represents the first steps in a massive project BHP is planning in the Gulf, named Greater Windling that began 4 years ago with promising discoveries complemented with analysis and seismic data. The location was chosen thanks to nearby processing facilities and other infrastructure capable of handling expected production. Construction is expected to begin as early as 2024.
BHP is Australia’s number one mining company, established in a mining town in New South Wales in 1885. Headquartered in Melbourne, BHP was named, in 2017, the world’s largest in its industry. BHP’s activities in Mexico have been characterized by a strong work ethic, with efforts in helping those affected by the COVID-19, both economically by keeping up payments and by encouraging them to keep up activities even in the face of lockdowns. It was back in 2019 that the company announced oil well discoveries made in the Mexican side of the Gulf.