BP green lights $59bn project in Gulf of Mexico

BP green lights $59bn project in Gulf of Mexico

BP has given the go-ahead for a deepwater project worth $9 billion (£7.2bn) in the Gulf of Mexico.

The Mad Dog Phase 2 oil project will consist of a new floating production platform with a capacity of 140,000 gross barrels of crude oil per day from up to 14 production wells.

Oil production under the project, which was previously worth $20 billion (£16bn), is expected to begin in late 2021.

The project will be BP’s first new online operating platform in the region since the Deepwater Horizon accident in 2010, where 11 people where killed.

The US Department of Justice ordered the company to pay more than $20 billion (£13bn) to resolve all claims from the oil spill.

Bob Dudley, BP Group Chief Executive said: “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. It also demonstrates the resilience of our strategy which is focused on building on incumbent positions in the world’s most prolific hydrocarbon basins while relentlessly focusing on value over volume.”

BP also announced it has bought shares in two North Sea exploration projects.