BHP Billiton approves $2.2-billion investment in Mad Dog Phase 2 project

2/9/2017

LONDON -- BHP Billiton has announced that the board has approved expenditure of $2.2 billion for its share of the development of the Mad Dog Phase 2 project in the Gulf of Mexico.

BHP Billiton holds a 23.9% participating interest in Mad Dog field. BP, the operator, holds a 60.5% participating interest, and Union Oil Company of California, an affiliate of Chevron, holds the remaining 15.6% participating interest. During the fourth quarter of 2016, BP sanctioned the Mad Dog Phase 2 project.

Mad Dog Phase 2, located in the Green Canyon area in the deepwater Gulf of Mexico, is a southern and southwestern extension of the existing Mad Dog field. The project includes a new floating production facility with the capacity to produce up to 140,000 bopd (gross) from up to 14 production wells. Production is expected to begin in the 2022 financial year.

Steve Pastor, BHP Billiton president, petroleum operations, said: “Mad Dog Phase 2 is one of the largest, discovered and undeveloped resources in the Gulf of Mexico, one of BHP Billiton’s preferred conventional deepwater basins. It offers an attractive investment opportunity for BHP Billiton and aligns with our strategic objective to build our conventional portfolio through the development of large, long-life, high-quality resources.”

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