BP PLC has sanctioned the Mad Dog Phase 2 project, which will include a floating production platform with the capacity to produce as much as 140,000 b/d of crude oil from as many as 14 production wells. Production is scheduled for late 2021.
“This announcement shows that big deepwater projects can still be economic in a low-price environment” provided designed in a smart, cost-effective way, said Bob Dudley, BP Group chief executive officer.
In 2013, BP and its partners decided to reevaluate the Mad Dog Phase 2 project after initial design plans proved too costly. BP is the operator with 60.5% working interest.
BHP Billiton Ltd. holds 23.9% and Unocal, an affiliate of Chevron USA Inc., holds 15.6%. BHP and Unocal have yet to announce a final investment decision on Mad Dog Phase 2.
BP worked with co-owners and contractors to simplify and standardize the earlier platform’s design, reducing the overall project cost by 60%.
Plans now call for a $9-billion project, which also includes capacity for water injection. Executives believe Phase 2 can be profitable at or below current oil prices.
Mad Dog was discovered in 1998 with production starting in 2005 (OGJ Online, Jan. 19, 2005).
Continued appraisal drilling in the field during 2009-11 doubled the resource estimate of Mad Dog field to more than 4 billion boe, which would require another platform. A second Mad Dog platform will be moored 6 miles to the southwest of the existing Mad Dog platform in 4,500 ft of water about 190 miles south of New Orleans.
The current Mad Dog platform has the capacity to produce up to 80,000 b/d of oil and 60 MMcfd of natural gas. BP plans to add 800,000 b/d net of new production globally from projects starting up during 2016-20.
Contact Paula Dittrickat [email protected].
