Mad Dog Phase 2, Gulf of Mexico, United States of America

Mad Dog Phase 2

The Mad Dog Phase 2 project is the second stage of development of the Mad Dog offshore field operated by BP. The Mad Dog field was discovered in 1998 and started production in 2005. The Phase 2 has been planned as an extension to BP's biggest discovery in Gulf of Mexico.

BP operates the Mad Dog Phase 2 with a 60.5% interest, while BHP Billiton and Chevron are the co-owners with 23.9% and 15.6% interest respectively. The entire Mad Dog area is estimated to hold four billion barrels of oil equivalent (bboe). BP estimates a production capacity between 120,000boe and 140,000boe a day from the new development.

"BP estimates a production capacity between 120,000boe and 140,000boe a day from the new development."

The Phase 2 development is planned for the southern portion of the Mad Dog field, which lies in the Green Canyon region of the Gulf of Mexico, roughly 200 miles (320km) south of New Orleans, Louisiana, US. It lies in approximately 5,100ft (1,550m) of water.

A revised plan for the field development was submitted to the US Bureau of Ocean Energy Management in August 2014 and the same was approved in March 2015. Production from the field is expected to commence in 2018.

BHP Billiton approved $708m in funding for the deepwater project in April 2012.

Mad Dog Phase 2 development details

The proposed development will comprise an integrated semi-submersible floating production platform that will be moored in 4,440ft of water in the Green Canyon. It will be located in block 780, west of the existing Mad Dog spar. Oil produced from the field will be transported to the Mardi Gras pipelines as per current agreements.

A water-flood project based on BP's LoSal flooding technology has also been planned in order to enhance oil recovery from the field. It will handle 280,000b/d of low-salinity water flooding.

Design of the platform has been inspired from BP-operated Atlantis semi-submersible platform that is able to decrease the weight of the topsides to 25,000t. It will also integrate the topside infrastructure with the jacket structure.

The development plan outlines the drilling of 29 wells, including 17 wet-tree producers and 12 wet-tree injectors from five drill centres located in blocks 825 and 870. Front-end engineering and design (FEED) work on the project started in the third quarter of 2014.

Mad Dog phase one development details

Phase one development of the field comprised a floating truss spar equipped with production and drilling facilities and designed for a processing capacity of 80,000 barrels of oil and 60 million cubic feet (mcf) of gas a day.

A third-party operator is the recipient of the oil and gas produced at the field that are transported via the Caesar (oil) pipeline and the Cleopatra (gas) pipeline systems.

Mad Dog phase 2 project background

Initial development plans of the project involved a spar designed by Technip similar to the one used in phase one. The plan was, however, scrapped in 2013 due to spiralling costs that were estimated to be $22bn.

The new development has reduced the development cost to $14bn with further reductions planned to bring down the cost to $10bn.

Key players involved

A contract was signed with FMC Technologies to manufacture and supply subsea equipment, including subsea trees, manifolds and jumpers.

The production platform will be constructed by KBR in collaboration with its Swedish subsidiary GVA. KBR and GVA were also awarded a contract for pre-FEED, FEED and execution stage support.

AMEC was selected to provide FEED services for the topside facilities of the project related to the spar concept.