BP has sanctioned the Mad Dog Phase 2 project in the Gulf of Mexico (United States), despite the current low oil price environment. Mad Dog Phase 2 will include a new floating production platform with the capacity to produce up to 140,000 gross bbl/d of crude oil from up to 14 production wells. Oil production is expected to begin in late 2021.
BP discovered the Mad Dog field in 1998 and began production in 2005; the company currently produces up to 80,000 bbl/d of oil and 60 mcf (1.7 mcm/d) of gas from the existing platform. Continued appraisal drilling in the field during 2009 and 2011 doubled the resource estimate of the Mad Dog field to more than 4 Gboe, spurring the need for another platform at the field. BP is the operator of the field, with a 60.5% working interest, in partnership with BHP Billiton (23.9%) and Union Oil Company of California (Chevron, 15.6%); partners are expected to make a final investment decision on the second pahse in the future.