Projects

Mad Dog Phase 2, Gulf of Mexico

The Mad Dog Phase 2 project is the second development stage of the Mad Dog offshore field operated by BP.

Project Type
Field extension
Location
Green Canyon, Gulf of Mexico
Ownership
BP (60.5%), BHP Billiton (23.9%) and Chevron (15.6%)
Operator
BP
Estimated Investment
$10bn
First Oil
2018

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

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, approximately 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 it 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.

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

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

The platform design was inspired by the 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 1 development details

Phase 1 development of the field included 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 1. In 2013, the plan was scrapped due to spiralling costs that were estimated to be $22bn.

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

Contractors involved

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

KBR and its Swedish subsidiary GVA will construct the production platform. The companies also won 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.

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