February 9, 2017: BHP Billiton approved its $2.2 billion share of investment for the second phase of the Mad Dog oilfield in the Gulf of Mexico.
- Green Canyon deepwater area
- new platform, 140,000 gross bbls of crude oil/day
- production is due to begin in late 2021
Original PostYahoo!Finance is reporting:
BP is reviewing its biggest new oil project in the Gulf of Mexico, due to rising development costs across the industry, and could delay the $10 billion scheme.
British oil major BP said on Friday that rising costs made the current plan, under which construction would start this year, difficult to justify, becoming the latest company to reconsider the economics of a major project.
"The current development plan for Mad Dog Phase 2 is not as attractive as previously modeled, due largely to market conditions and industry inflation," it said in a statement.
The company wants to get its core Gulf of Mexico business, which accounts for around a fifth of its global output, back on track after the disastrous 2010 Macondo oil spill, which is still the subject of a court case in New Orleans.
And so it goes.
By the way, what would be the total dollars budgeted for 22 wells in a 2560-acre spacing unit (4 sections) in the Bakken? 22 x $10 million = $220 million.