BP approves Mad Dog Phase 2 in Gulf of Mexico

Reuters News
Posted: Feb 07, 2012 11:53 AM
BP approves Mad Dog Phase 2 in Gulf of Mexico

By Tom Bergin

LONDON (Reuters) - BP said it had approved a plan to develop a "major new gas field" in the Gulf of Mexico, the latest sign the British oil group is getting back to business in the area after its disastrous 2010 oil spill.

Chief Executive Bob Dudley said on Tuesday that BP and its partners Chevron Corp and BHP Billiton had agreed to build phase two of their Mad Dog development.

This will involve installing a new 'spar' platform on the southern extension of the field, capable of producing 120,000-140,000 barrels of oil equivalent per day (boed).

"We have just sanctioned with our partners Chevron and BHP ... one of the largest new free-standing developments in the Gulf of Mexico," Dudley told reporters at a press conference.

BP has a 60.5 percent working interest in Mad Dog. BHP Billiton has a 23.9 percent stake, and Chevron has 15.6 percent.

(Reporting by Tom Bergin; Editing by Will Waterman)