BP Reviewing Mad Dog Phase 2 Development Plans

BP plc and partners are reviewing their plans for the second phase of the Mad Dog field development in the U.S. Gulf of Mexico as current market conditions and industry inflation have made the current development scheme less attractive.

BP, Chevron Corp. and BHP Billiton Petroleum are reviewing the existing plans and other options in evaluating how to develop the project, BP's largest greenfield development in the U.S. Gulf in a decade and one of the world's largest spars.

However, BP told Rigzone it fully intends to develop the Mad Dog Phase 2 resources and is committed to moving forward with the right plan.

"It is too early to speculate when the details of the final plan will be approved by BP and its co-owners," a BP spokesperson said in an email statement.

The current plans for Mad Dog Phase 2 include a spar floating system with infield flow lines and associated subsea infrastructure to connect the subsea production and injection wells. The project also includes export pipelines connected to the existing Mardi Gras system.

The spar will have production capacity of 130,000 barrels of oil per day, 75 million cubic feet per day of total compression, and water injection capacity of 280,000 barrels per day (bopd) for waterflood of western and southern field segments. Water injection capacity can be expanded to 350,000 bopd to accommodate future injection requirements.

The development concept includes 33 wet wells, 19 production and 14 injection wells.

BP is operator of Mad Dog Phase 2 with 60.5 percent working interest. BHP Petroleum holds 23.9 percent interest and Chevron owns 15.6 percent.

Mad Dog Phase 2 was one of seven projects BP anticipated would be in the post-final investment decision stage in the 2015-2020 timeframe. BP expected to kick off construction of the Mad Dog 2 infrastructure around the end of 2013, according to a BP December 2012 presentation.

Mad Dog Phase 2 is one of 11 BP megaprojects that will each require a gross investment of over $10 billion.  Located in the southern Green Canyon area of the U.S. Gulf in water depths of 4,500 to 6,800 feet (1,372 to 2,073 meters), Mad Dog is estimated to contain reserves ranging from 200 to 450 million barrels of oil equivalent.

The company reported late last year it was on track to deliver 15 projects from 2012-2014. BP started up three of those projects in 2012, including the Galapagos project in the U.S. Gulf, Clochas Mavacola in Angola and Devenick in the North Sea.  

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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BP Reviewing Mad Dog Phase 2 Development Plans

BP plc and partners are reviewing their plans for the second phase of the Mad Dog field development in the U.S. Gulf of Mexico as current market conditions and industry inflation have made the current development scheme less attractive.

BP, Chevron Corp. and BHP Billiton Petroleum are reviewing the existing plans and other options in evaluating how to develop the project, BP's largest greenfield development in the U.S. Gulf in a decade and one of the world's largest spars.

However, BP told Rigzone it fully intends to develop the Mad Dog Phase 2 resources and is committed to moving forward with the right plan.

"It is too early to speculate when the details of the final plan will be approved by BP and its co-owners," a BP spokesperson said in an email statement.

The current plans for Mad Dog Phase 2 include a spar floating system with infield flow lines and associated subsea infrastructure to connect the subsea production and injection wells. The project also includes export pipelines connected to the existing Mardi Gras system.

The spar will have production capacity of 130,000 barrels of oil per day, 75 million cubic feet per day of total compression, and water injection capacity of 280,000 barrels per day (bopd) for waterflood of western and southern field segments. Water injection capacity can be expanded to 350,000 bopd to accommodate future injection requirements.

The development concept includes 33 wet wells, 19 production and 14 injection wells.

BP is operator of Mad Dog Phase 2 with 60.5 percent working interest. BHP Petroleum holds 23.9 percent interest and Chevron owns 15.6 percent.

Mad Dog Phase 2 was one of seven projects BP anticipated would be in the post-final investment decision stage in the 2015-2020 timeframe. BP expected to kick off construction of the Mad Dog 2 infrastructure around the end of 2013, according to a BP December 2012 presentation.

Mad Dog Phase 2 is one of 11 BP megaprojects that will each require a gross investment of over $10 billion.  Located in the southern Green Canyon area of the U.S. Gulf in water depths of 4,500 to 6,800 feet (1,372 to 2,073 meters), Mad Dog is estimated to contain reserves ranging from 200 to 450 million barrels of oil equivalent.

The company reported late last year it was on track to deliver 15 projects from 2012-2014. BP started up three of those projects in 2012, including the Galapagos project in the U.S. Gulf, Clochas Mavacola in Angola and Devenick in the North Sea.  

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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TAQA Reviewing Cormorant Alpha Situation after Second Leak

Technical staff at TAQA Bratani are holding a meeting Monday morning to assess the situation at the Cormorant Alpha platform in the North Sea, after another leak was reported Saturday.

The incident is connected to the hydrocarbon leak that occurred on the platform in mid-January, a TAQA Bratani spokeswoman confirmed Monday in a phone call with Rigzone. The original leak was detected in one of the platform's legs and led to the shutting down of the Brent Pipeline System for several days.

"It concerns the same leg on Cormorant Alpha… but it's a different line," the spokeswoman said.

"The Brent Pipeline System has been shut down as a precaution and… there's a technical meeting going on this morning and we hope to get an update out today."

Speaking to Rigzone after the January incident, Oil & Gas UK Economics Director Mike Tholen said that fields that use the Brent Pipeline System account for around 10 percent of UK production. These fields include Causeway and Cormorant East. 

TAQA Bratani said that the latest leak, which occurred at 9:40 a.m. (UK time) Saturday, has been contained with no further hydrocarbon release and that the hydrocarbons released in the incident have remained within the platform leg, with no hydrocarbons entering the environment. The company also reported that it removed 71 non-essential personnel from the platform and that everyone was safe and well.

The news was the second health and safety incident that Abu Dhabi national oil company TAQA, the parent of TAQA Bratani, was involved in over the weekend.

TAQA reported Saturday that in Morocco a worker at the Jorf Lasfar 5+6 construction site, 80 miles south of Casablanca, had died. The deceased was a Daewoo employee working under contract.

TAQA and its partners, Daewoo and Jorf Lasfar Energy Company, are conducting investigations into the incident and regulatory and government authorities have been informed, it said.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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