BHP Billiton payment to Govt down 45% to US$28.3m
Saturday, September 30 2017 @ 12:00 AM AST
Contributed by: AleemKhan
BHP Billiton paid the government of Trinidad and Tobago 45 per cent less this year than it did last year, the company disclosed in its Economic Contribution Report 2017 released September 20. BHP Billiton paid the T&T government US$28.3 million for the year ended June 30, 2017, compared to US$51.1 million a year earlier. BHP Billiton revenue from T&T also fell, by 11 per cent to US$110 million for the year ended June 30 (FY2017), compared to US$123 million a year earlier, BHP Billiton's annual report released September 20 said.
"In FY2017, we discovered gas at LeClerc in Trinidad and Tobago. Commercial evaluation of that discovery is well advanced: the region has large installed liquefied natural gas capacity and local petrochemical demand that is short of gas in the medium term," the company said in its report.
"We operate the Greater Angostura field (45 per cent interest in the production sharing contract), an integrated oil and gas development located offshore 40 kilometres east of Trinidad. The crude oil is sold on a spot basis to international markets, while the gas is sold domestically under term contracts," BHP Billiton said.
BHP Billiton, under a 'commodity price risk' heading, said: "Financial instruments with commodity price risk are forward commodity and other derivative contracts with a net assets fair value of US$358 million (2016: US$229 million). Significant items are primarily derivatives embedded in physical commodity purchase and sales contracts of gas in Trinidad and Tobago with a net assets fair value of US$370 million (2016:US$220 million)."
BHP Billiton shareholders were also told: "In the Angostura area fields in Trinidad and Tobago, 6 million barrels of oil equivalent (MMboe) was added for better than expected performance."
Under 'Proved undeveloped reserves', BHP Billiton said that as at June 30, 2017, its Petroleum division had 483 MMboe of proved undeveloped reserves, which represented 31 per cent of year-end 2017 proved reserves of 1,535 MMboe. "Approximately 263 MMboe or 54 per cent of the proved undeveloped reserves reside in our conventional offshore fields in Australia, the Gulf of Mexico and Trinidad and Tobago, while 220 MMboe or 46 per cent resides in our Onshore US fields," the company said.
These additions were offset by development activities that converted 177 MMboe of proved undeveloped reserves to proved developed reserves. In Trinidad and Tobago, 23 MMboe was converted to proved developed reserves for the completion of Angostura Phase 3 development.
Source: BHP Billiton financials
Source: U.S. Securities and Exchange Commission (SEC)