Following approvals by BP and BHP Billiton, Chevron has reached a final investment decision (FID) for the Mad Dog 2 project in the U.S. Gulf of Mexico.
The final investment decision was reached in February 2017, Chevron said in an SEC filing last week. This project milestone was also confirmed by the company’s spokesperson in an e-mail to Offshore Energy Today.
The project is operated by BP, with 60.5 percent working interest. BHP Billiton holds 23.9 percent and Union Oil Company of California, an affiliate of Chevron U.S.A. Inc., has 15.6 percent interest. The Mad Dog 2 is an extension to the Mad Dog project in the U.S. Gulf of Mexico which has been in production since 2005 via a spar facility designed to process 80.000 barrels a day.
The operator sanctioned the Mad Dog 2 in December 2016. The project will include a new floating production platform with the capacity to produce up to 140,000 gross barrels of crude oil per day from up to 14 production wells.
The platform was reportedly ordered at South Korea’s Samsung Heavy Industries shipyard in early January. Come February and the second partner, BHP, also approved the project allocating $2.2 billion for its share of the development. Oil production is expected to begin in late 2021.
Offshore Energy Today Staff