BHP Oil Production Forecast Lowered By Citigroup

Citigroup C lowered its oil production forecasts for BHP Billiton BHP, the largest mining company in the world, due to a moratorium on deepwater drilling in the Gulf of Mexico. BHP is one of the largest deepwater drillers in the Gulf. BHP may boost oil production to 168 million barrels in the year ending June 2011, compared with a prior estimate of 180 million barrels, Bloomberg News reported, citing Citigroup. The company had hoped to raise production 8% to 10% from 160 million barrels this year. Production in 2012 may be 178 million barrels, down from a previous estimate of 202 million barrels. In May, President Obama halted new leases for offshore drillers for six months and halted operations at 33 Gulf wells. BHP Billiton is Australia's largest oil and natural gas producer.