BP takes leap back into Gulf of Mexico drilling
The rising price of crude paves the way for a new platform after BP's devastating Deepwater Horizon oil spill in 2010
New York — BP’s decision to move ahead with a $9bn project to drill in the Gulf of Mexico is the first step towards major oil companies moving forward with US offshore plans that were postponed during crude’s price rout. Exploration and development of new wells in the gulf slowed as crude prices plunged in 2014 to a low of $26.05 early in 2016. The project, known as Mad Dog Phase 2, is the first new gulf platform to be sanctioned in a year-and-a-half, since Royal Dutch Shell began development of its Appatomattox project in July 2015. BP said its decision on the platform and infrastructure came after the oil major managed to cut projected costs for the project by more than 50% Mad Dog, which will have the capacity to pump up to 140,000 barrels per day (bpd), has access to a proven crude supply. The drilling will be completed in an area that requires less technical complexity than some of the deepwater fields, where competitors have proposed projects. It is scheduled to start producin...
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