The BHP Board has approved BHP’s US$696 million (~AUD$973m) share in funding to develop the Atlantis Phase 3 project in the US Gulf of Mexico.

Atlantis Phase 3 is located in the deepwater Gulf of Mexico, approximately 208 kilometres off the coast of Louisiana.

The project is a subsea tie-back of eight new production wells that will be drilled and completed to access infill resource opportunities.

Production from the $1.3 billion project is expected to occur in 2020 and is estimated to increase production by approximately 38,000 barrels of oil equivalent per day gross at its peak.

BHP President Operations Petroleum Steve Pastor said the project provides a competitive opportunity to deliver on their strategy to grow resources in Tier 1 conventional deepwater assets. BHP holds a 44 per cent interest in the Atlantis field, while BP holds a 56 per cent interest.

Further to this, the BHP Board also just approved US$256 million (~$AUD 357 million) in funding to drill an additional appraisal well (3DEL) and perform further studies in the Trion field, offshore of Mexico.

BHP states that the primary objectives of the 3DEL appraisal well and studies are to confirm the volume and composition of hydrocarbons near the crest of the Trion structure and study the viability of development of the Trion field.

Mr Pastor said that a further appraisal well at Trion, following the recent encouraging results at the 2DEL appraisal well, reduces investment risk and adds project value.

“If Trion is determined to be commercial, these funds will also provide an option to potentially accelerate development of Trion,” he commented.