BHP Billiton is investing US$2.2 billion ($2.9 billion) as part of its share in the development of the Mad Dog Phase 2 oil project in the Gulf of Mexico.
The project, located in the Green Canyon area in the Deepwater Gulf of Mexico, is an extension of the existing Mad Dog field, and was approved by BP in the fourth quarter of 2016.
BP, the project operator, holds a 60.5 per cent interest in the Mad Dog field, with BHP holding 23.9 per cent and and Union Oil Company of California, an affiliate of Chevron, holding the remaining 15.6 per cent.
The Mad Dog Phase 2 project includes a new floating production facility with the capacity to produce up to 140,000 gross barrels of crude oil a day from up to 14 production wells.
BHP Billiton president operations petroleum, Steve Pastor, said it is one of the largest discovered and underdeveloped resources in the Gulf of Mexico.
“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,” he said.
Production at the Mad Dog Phase 2 project is set to begin in the 2022 financial year.