Billiton strikes it rich off Trinidad

BHP Billiton has made a world-class oil discovery off the coast of Trinidad, adding to the region's growing status as a significant hydrocarbon province. The recently-merged group said results from its Canteen-1 well pointed to a 'multi-hundred-million barrel find'.

This would rank it alongside the substantial discoveries being made in oil hot spots such as in the deep water of the Gulf of Mexico. But the shallow water around Trinidad's east coast will make it a much more attractive development prospect than many of its deepwater peers, prompting BHP to say Canteen could be in production within two to three years. Its feasibility will also be helped by its close proximity to the recent Kairi-1 oil and gas discovery.

It is BHP's fourth commercial find in the area, which has long been known for its gas but had shown few signs of becoming a significant oil province. BHP is the operator and 45% shareholder of the block containing both finds. TotalFinaElf has 30% and Talisman Energy has the rest.

The find comes a week after BHP confirmed its commitment to the oil industry, rejecting speculation it would sell the petroleum arm to focus on minerals following the merger.

The shares rose 10 3/4p, or 3%, to 346 3/4p.