BHP approves $2.2 billion investment in Mad Dog oilfield

BHP approves $2.2 billion investment in Mad Dog oilfield

BHP Billiton (NYSE:BHP) has announced it has approved a $2.2 billion investment in the second phase of BP’s (LSE:BP) Mad Dog oilfield.

BHP, the world’s largest mining company, will undertake a 23.9% stake in the Gulf of Mexico oil reserve, joining majority shareholder BP, which holds a 60.5% stake and Chevron (NYSE:CVX) affiliate Union Oil Company, which has a 15.6% share in the project.

Production is set to commence at the site during the 2022 financial year. The project includes a new floating facility with the capacity to produce up to 140,000 gross barrels of crude oil per day.

Steve Pastor, BHP Billiton president operations petroleum, said: “Mad Dog Phase 2 is one of the largest, discovered and undeveloped resources in the Gulf of Mexico, one of BHP Billiton’s preferred conventional deep-water basins.

“It offers an attractive investment opportunity for BHP Billiton and aligns with our strategic objective to build our conventional portfolio through the development of large, long-life, high-quality resources.”