MELBOURNE, Australia – BHP Billiton (NYSE:BBL) says it has precommitted funding for Mad Dog Phase 2 in deepwater Gulf of Mexico. BHP’s share if the cost is $708 million.
A final investment decision is anticipated in calendar year 2013 with first production scheduled for calendar year 2018.
Funding will move forward with detailed engineering and procurement of long-lead items related to the hull, topsides, and subsea equipment.
Mad Dog Phase 2 is based on successful appraisal drilling which confirmed significant hydrocarbons in the southern portion of the Mad Dog field. The proposed project includes the development of a second spar with all subsea production and injection wells. The new facility is estimated to have a design capacity of approximately 130,000 b/d of oil that will be exported via the Mardi Gras Pipelines under existing agreements.
Mad Dog is a partnership between BP (operator, 60.5%), BHP Billiton (23.9%), and Chevron (15.6%).