Chevron reached its final investment decision (FID) for Mad Dog 2 in the Gulf of Mexico, paving the way for the BP-operated project to reach first oil in 2021.
Illustration of Mad Dog 2, from BP.
The US supermajor revealed it had made its decision earlier this month in a US Securities & Exchange Commission.
Chevron is the last of the Mad Dog 2 partners to approve the project. In early February, BHP Billiton's board approved spending US$2.2 billion for its share of development costs. In December 2016, BP sanctioned the $9 billion investment.
Mad Dog Phase 2 is in the deepwater Green Canyon area, and will include a new floating production platform with the capacity to produce up to 140,000 gross b/d from up to 14 production wells. It is a southern and southwestern extension of the existing Mad Dog field, with the production facility due to be moored about 6mi to the southwest of the existing Mad Dog platform, some 190mi south of New Orleans, in 4500ft water depth.
The current Mad Dog platform has the capacity to produce up to 80,000 b/d and 60 MMcf/d of natural gas.
BP is the operator of Mad Dog with 60.5% working interest. Partners BHP Billiton holds 23.9% and Chevron’s Union Oil Co. of California holds 15.6%.