BP to expand its Gulf of Mexico oil field

12/1, 6:24 PM (Source: TeleTrader.com)

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BP announced on Thursday it will go ahead with the expansion of its Mad Dog oil field in the Gulf of Mexico.

The petroleum company reached the decision to proceed with the second phase of the project after it lowered the cost of the expansion from $20 billion forecast in 2013 to $9 billion.

“This announcement shows that big deepwater projects can still be economic in a low price environment in the US if they are designed in a smart and cost-effective way,” CEO Bob Dudley stated.

Apart from BP, which is the Mad Dog operator, BHP Billiton and Chevron also own a part of the oil field. However, the two companies have not made decisions on their participation in the expansion.

The second phase of the expansion is set to start in 2021.

Teletrader Newsroom / NP