BP has sanctioned the Mad Dog Phase 2 project in the U.S., highlighting its long-term commitment to the country despite the current low oil price environment.
Mad Dog Phase 2 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.
In 2013, BP (operator, with 60.5-percent working interest) and co-owners BHP Billiton (23.9 percent) and Union Oil Co. of California, an affiliate of Chevron U.S.A. Inc. (15.6 percent), decided to re-evaluate the Mad Dog Phase 2 project after an initial design proved too complex and costly. Since then, BP has worked with co-owners and contractors to simplify and standardize the platform’s design, reducing the overall project cost by about 60 percent.