BP Ups Investment in Gulf of mexico as Oil prices Continue Recovery

BP Ups Investment in Gulf of mexico as Oil prices Continue Recovery

British petroleum are going to be pursuing a $9 billion underwater drilling project within the Gulf of mexico, when securing a go-ahead from the u.s . government for the development, consistent with a new report by The Chemical Engineer.

The Mad Dog field, that BP discovered 300 kilometers off the coast of new Orleans in 1998, began production in 2005. Currently, the field produces 80,000 barrels per day, however the site is expected to hold four billion barrels of oil equivalent.

The second phase of the project can lead to the creation of another floating production platform in 1,400-meter-deep waters.

The new wing can sit 9.5 kilometers away from the primary phase’s platform and is slated to pump out 140,000 barrels per day from 14 wells beginning at the end of 2021.

BP owns a 60.5 % stake within the project, whereas BHP Billiton holds a 23.9 % share and Chevron’s Union oil company of california holds 15.6 %.

In 2013, the consortium decided the plans would be too expensive to remain feasible, leading project leaders to amend the design to reduce costs by 60 % – that created construction possible even when oil prices fell in 2014.

“Mad Dog part two has been one of the most anticipated projects within the U.S. deepwater and underscores our continued commitment to the Gulf of mexico,” Richard Morrison, who heads BP’s Gulf of mexico activities, said.

“The project team showed tremendous discipline and arrived at a far better and more resilient concept that we tend to expect to generate strong returns for years to come, even in a low oil price environment.”

BP recently became a qualified bidder to work on portions of Mexico’s Trion field, that is thought to require nearly $11 billion in investments and can be developed jointly with Mexico’s state-run oil conglomerate, Pemex.

The Trion field is located within the Perdido Ford Belt within the Gulf of mexico, close to the US-Mexico border, and is thought to hold 485 million barrels of oil equivalent.