BHP Billiton to expand after year of cuts

Though oil and gas output declined in 2016, hit by low global prices, BHP Billiton is looking forward to a strong year ahead, the company said on Wednesday.

Among the highlights in BHP Billiton’s operational review of the past six months is the some USD 820 million set aside this year for exploration in Mexico’s offshore Trion field, for which the company placed a successful bid weeks ago.

“In Petroleum, we will accelerate our counter-cyclical oil exploration efforts this year,” CEO Andrew Mackenzie said in a statement. “After the first successful rig, our Onshore US gas hedging program will also be expanded to secure attractive returns.”

Total petroleum production during the six-month period covered fell 15% while natural gas output was down some 10% year-on-year, the review added. Much of that was due to cuts in US shale production due to low oil and gas prices.

Apart from the US and Mexico, BHP Billiton is looking to expand its exploration and development programme in Trinidad and Tobago and several sites in Australia.

Photo: BHP Billiton