BP - Green Canyon Block 826 Mad Dog Field Expansion

Project Status:

As of early 2002, BHP Billiton has approved the development of its Mad Dog oil and gas discovery in the ultra-deepwater Green Canyon area of the Gulf of Mexico. 

The BHP Billiton Board has sanctioned a capital expenditure for field development of up to US$335 million. The final expenditure will depend on the number of development wells required to optimize the capture of reserves.  

The capital expenditure involves the detailed engineering and installation of the SPAR facility and drilling of new development wells. It will also include the sidetracking of two previously drilled appraisal wells, and the completion of those wells as producers.

First production is expected by the end of calendar year 2004, with production at full design capacity expected to occur within 12 months.  

The field has an estimated life of 20 years.

Installed by Heerema Marine Contractors' Balder deepwater construction vessel, the Mad Dog truss spar led the industry with a number of firsts. Weighing in at 8,000 tons, the topsides was the largest single-hook load lift in the Gulf of Mexico.

The company broke another industry record for the installation of the first 24-inch-diameter steel catenary riser to the Mad Dog spar. The first polyester rope mooring system approved for use on a permanent facility in the Gulf of Mexico, the mooring system uses the largest diameter polyester rope ever made.

As of mid January 2005, BP announced start-up of oil and natural gas production from the Mad Dog development, located in the deepwater Gulf of Mexico, approximately 200 miles South of New Orleans.

Located in approximately 4,500 feet of water in Green Canyon Block 826, Mad Dog production began on Jan. 13, and will increase over the next year as additional wells are completed and brought online.

As of mid March 2005, Unocal stated that an appraisal well drilled on the deepwater Mad Dog Southwest Ridge in the Gulf of Mexico encountered significant hydrocarbon pay. The discovery was further delineated by three sidetracks.

The resources associated with these appraisal wells could either be produced through spar development wells or future subsea tie-backs. (Topco)