BHP Billiton today agreed to pay its $2.2billion share of the Mad Dog Phase 2 development in the Gulf of Mexico.
Mad Dog Phase 2, which is a southern and southwestern extension of the existing Mad Dog field, includes a new floating production facility with the capacity to produce up to 140,000 gross barrels of crude oil per day from up to 14 production wells.
Production is expected to begin in 2022.
BHP holds a 23.9% interest in the Mad Dog field, while BP is on 60.5%.
Union Oil Company of California, a Chevron affliliate, holds the remaining 15.6%.
Steve Pastor, BHP president of petroleum operations, 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.”