BP Mad Dog Phase 2 approval

4. December, 2016 News No comments

Recently BP has sanctioned the Mad Dog Phase 2. The project is intended to extend the capacity of production from Mad Dog Oil Field in Gulf of Mexico by adding a second floating production platform.

The new platform will have the capacity to produce up to 140,000 gross barrels of crude oil per day from up to 14 production wells. The existing, spar type, Mad Dog platform has capacity to produce 80,000 gross barrels of crude oil operated at a water depth of 4,500 ft, located about 190 miles south of New Orleans. It started production from that field in 2005.

The Mad Dog Oil Field was discovered by BP in 1998. In 2011 the appraisal drilling proved that the reservoir contains more than 4 billion barrels of oil equivalent. Another platform was needed on the field.

In 2013 the design of new platform was too expensive and complex to be realized, the cost of the project amounted to $21 billion. Since then, the BP with co-owners (BHP Billiton and Chevron) has worked on simplification and standardization of the previous platform design. Due to this action the final cost of project is reduced by 60% to $9 billion.
“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,” said Bob Dudley, BP Group Chief Executive.

Production of the new floating production platform is scheduled to begin in 2021. The new platform will be similar to BP’s Atlantis Platform, said BP spokesperson Jason Ryan.

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