• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 12 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 5 hours Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 4 hours Theresa May to Step Down
  • 5 hours Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 16 hours Total nonsense in climate debate
  • 16 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 15 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 19 hours Will Canada drop Liberals, vote in Conservatives?
  • 19 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 19 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 15 hours Apple Boycott in China
  • 11 hours Australian Voters Reject 'Climate Change' Politicians
  • 2 hours Why is Strait of Hormuz the World's Most Important Oil Artery

BHP Billiton Greenlights $2.2B Investment In Deepwater Gulf Of Mexico

Offshore Drilling

BHP Billiton said on Thursday that it had approved spending US$2.2 billion of its share of development of BP-operated Mad Dog Phase 2 deepwater project in the Gulf of Mexico, which would mark the UK oil supermajor’s first new project in the area since the Deepwater Horizon disaster.

BHP Billiton holds a 23.9-percent participating interest in the Mad Dog field. The operator BP owns a 60.5-percent participating interest, and an affiliate of Chevron U.S.A. Inc. - Union Oil Company of California - holds the other 15.6 percent participating interest in the project.

In December last year, BP sanctioned the US$9-billion project, which will include a new floating production platform with the capacity to produce up to 140,000 gross barrels of crude oil per day from up to 14 production wells. Oil production is expected to begin in late 2021.

BP has been re-evaluating the project since 2013 after an initial design turned out to be too complex and expensive. BP, the co-owners and contractors have reduced the overall project cost by around 60 percent, to US$9 billion.

BP’s investment decision late last year and BHP Billiton’s joining in today with an investment pledge show that deepwater is not doomed.

At an industry event in October last year, BP’s CEO Bob Dudley was more optimistic about deepwater drilling than his colleagues’ oil executives.

Related: Permian Drilling Costs Surge: Are The Days Of Cheap Oilfield Services Over?

In BP’s statement on sanctioning Mad Dog 2, Dudley said:

This announcement shows that big deepwater projects can still be economic in a low price environment in the U.S. if they are designed in a smart and cost-effective way.

Steve Pastor, BHP Billiton President Operations Petroleum, said today that the project is part of his group’s strategic objective to build a conventional portfolio through the development of large, long-life, high-quality resources.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News