Australian-based mining company BHP Billiton has approved an investment of US$283 million to develop the Ruby oil and gas project in Trinidad and Tobago.
The company made the announcement on its website yesterday.
First production from the Ruby project is expected in the 2021 calendar year and is estimated to increase T&T’s oil production by 16,000 barrels and 80 million standard cubic feet of natural gas per day, at its peak.
Located in the in the Block 3(a) development area, northeast coast of Trinidad, the project has an estimated recoverable 2C resources of 13.2 million barrels of oil and 274 billion cubic feet of gas.
The project consists of five production wells tied back utilising the latent capacity of the existing processing facilities, proven technology of the existing operated asset, and newly acquired ocean bottom node seismic imaging.
Total investment for the Ruby project, including pre-commitment capital, is approximately US$500 million.
BHP, as the Operator, holds a 68.46 per cent interest, and Heritage Petroleum and the National Gas Company of Trinidad and Tobago (NGC) hold the remaining 20.13 per cent and 11.41 per cent interest, respectively.
The Block 3(a) joint operating agreement requires at least two parties and 65 per cent of the working interest to approve the investment.
Commenting on the latest developing BHP president Operations Petroleum, Geraldine Slattery, stated:
“This is an important milestone for BHP in Trinidad and Tobago. Ruby aligns well with our strategy of maximising value from our existing assets, bringing competitive near term value and volume growth.”