BHP Billiton trims its oil, gas spending plans

Melbourne-based BHP Billiton Ltd. reported a reduction in its oil and natural gas capital expenditures to $2.9 billion for fiscal year 2016, which is down 6% from earlier estimates.

Andrew Mackenzie, BHP Billiton chief executive officer, said, “BHP Billiton remains on track to meet full-year production and cost guidance after a solid operational performance this year. In petroleum, we continue to reduce costs in both our onshore US and conventional businesses.”

BHP Billiton expects to produce 237 million boe during fiscal 2016, a guidance that’s unchanged from previous estimates. Its fiscal year ends June 30.

The company reported crude oil, condensate, and natural gas liquids production for the quarter ended Sept. 30 at 30.7 MMboe, which was down 1% from the same quarter a year ago.

Regarding its onshore US liquids volumes, BHP Billiton reported production of 13.5 MMboe, which executives said was largely underpinned by continued momentum in the Permian basin.

Recently, BPH Billiton acquired oil acreage in the Beagle basin in Western Australia and in the Western Gulf of Mexico.

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