Here is a bit of good news for those working in the GOM oilfield. Time for Edison Chouest to start readying the fleet!
Great news indeed.
Some light at the end of the tunnel?
Pay raises on the horizon.
BP’s (NYSE: BP) highly anticipated Mad Dog Phase 2 has cleared a major hurdle, with the operator revealing it has sanctioned the $9 billion deepwater U.S. Gulf of Mexico development.
The news, delivered Dec. 1, comes after BP slashed costs for the originally $20 billion project by more than half amid a lingering downturn that left many offshore projects stalled. The project will give BP and its partners—BHP Billiton and Chevron affiliate Union Oil Co. of California—an opportunity to capitalize on the more than 4 billion barrels of oil equivalent (Bboe) resources at the Mad Dog Field, where production began from the first platform about 11 years ago.
The investment decision is one of several recent ones made in the oil and gas industry as market conditions slowly improve.
“This announcement shows that big deepwater projects can still be economic in a low-price environment in the U.S. if they are designed in a smart and cost-effective way,” BP Group CEO Bob Dudley said in a statement. “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.”
Plans for Mad Dog Phase 2, where oil production is set to start in late 2021, NOT SURE IF THIS IS CORRECT? I did notice conflicting dates?
include a new floating production platform that will be moored about six miles southwest of the existing Mad Dog Platform. The new platform will have the capacity to produce, from 14 wells, up to 140,000 barrels per day (Mbbl/d) of gross crude oil, compared with the existing platform’s production capacity of up to 80 Mbbl/d of gross oil.
Too bad the Island Enforcer that did phase one is headed to Brazil then. …or at least that was the last word I heard from the guys that are on there until she leaves and gets her Brazilian crew.
Come on…everybody’s got to eat.