Canteen-1 spudded on 23 October and was drilled to a total depth of 2150m and encountered about 210m (gross) of hydrocarbon-bearing sands that included 61m of net oil pay and 55m of net gas pay. BHPB said the well was tested at a rate of 3700 barrels of oil per day through a 72/64 inch choke. Log and test data from Canteen-1 indicate a high quality reservoir formation similar to that found in the Kairi-1 well.

"The results from Canteen-1 confirm a significant oil find and with this being our fourth discovery in the area, offshore Trinidad has the potential to become a major hydrocarbon producing province, providing significant value to all stakeholders," BHP Billiton petroleum president and chief executive Philip Aiken said. "We will look to fast-track the development which, given the relatively shallow water and proximity to the coast, could be in production within two to three years."

BHP Billiton holds a 45 per cent interest in Block 2(c) and is the designated operator. Shares in BHP Billiton rose 22c to $10.38 at the time of writing.

Following the announcement of a big oil discovery in the Caribbean, BHP Billiton is planning to spend upwards of $US400 million developing the Mad Dog field in the Gulf of Mexico over the next five years.

The Mad Dog-4 appraisal well was drilled in 1,350m of water and the field boasts reserves of between 200 million and 450 million barrels. It is expected to be operational by the end of 2004. Development of Mad Dog will be followed by the bigger Atlantis field, which is estimated to contain between 400 million and 800 million barrels, with BHPB having a 44 per cent stake.

BHP Billiton is about to re-enter the downstream energy sector after successfully tendering to build and operate a massive hydroelectric power plant in Brazil.

The Brazilian state electricity generator, Aneel, last week awarded tenders to build 11 hydroelectric plants needed to overcome a massive energy supply problem that has choked heavy industry in the South American country this year.

A consortium comprising BHPB, aluminium giant Alcoa, leading iron ore producer CVRD and two Brazilian companies won the tender for the biggest hydro project proposed, a 1087 megawatt plant planned for the border of Para and Tocantins states in Brazil's north.

BHPB's investment comes 18 months after it sold its stake in a 3000km gas pipeline linking gas fields in Bolivia with Brazil. In 1998, BHP sold its power division to Duke Energy for $509 million to help turn around the company, which was suffering a financial crisis at the time.