BHP Billiton greenlights Mad Dog Phase 2 investment
BHP Billiton has approved expenditure of $2.2 billion for its share of the development of the Mad Dog Phase 2 project in the deepwater Gulf of Mexico.
BHP Billiton holds a 23.9% participating interest in the Mad Dog field.BP, the operator, holds a 60.5% participating interest, and Union Oil Co. of California, an affiliate of Chevron U.S.A. Inc., holds the remaining 15.6% participating interest.
BP sanctioned the Mad Dog Phase 2 project in December 2016. Located in the Green Canyon area in the deepwater Gulf of Mexico, the development 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 gross b/d of oil from up to 14 production wells. Production is expected to begin in the 2022 financial year.