BP to Proceed with Mad Dog Project in Gulf of Mexico
December 01 2016 - 12:30PM
Dow Jones News
LONDON—BP PLC said Thursday it would proceed with the second
phase of its Mad Dog expansion project in the Gulf of Mexico,
ending years of delays and speculation over its future in a low oil
price environment.
The energy giant said it had cut the project's cost to $9
billion from the $20 billion estimated in 2013, highlighting the
way the industry is driving down spending to make expensive
deepwater projects work at lower oil prices.
BP plans to install a floating production facility about 6 miles
from its existing platform, adding 140,000 barrels to the field's
current daily output of 80,000 barrels of oil and 60 million gross
cubic feet of natural gas.
The project is expected to begin production in late 2021, but
BP's partners on it, BHP Billiton and Chevron Corp., haven't
decided whether to proceed.
Write to Sarah Kent at sarah.kent@wsj.com
(END) Dow Jones Newswires
December 01, 2016 12:15 ET (17:15 GMT)
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