|Thursday, 14 February 2002|
A floating SPAR with integrated drilling and well head facilities will be the final design for the Gulf of Mexico Mad Dog Development, according to one of the partners, BHP Billiton.
It will be all systems go for the development of the oil and gas discovery in the ultra-deepwater Green Canyon area of the Gulf of Mexico after approval was announced for the project this week.
The BHP Billiton Board has sanctioned a capital expenditure of up to US$335 million for field development though the final figure will depend on the number of development wells required to optimise the capture of reserves.
The Mad Dog field contains estimated reserves in the range of 200-450 million barrels of oil equivalent (mmboe) gross. (BHPB's share is 42-94 mmboe after deduction of royalty at a rate of 12.5 per cent).
Mad Dog is located in water depths of 1371-2072 metres and will be developed using proven technology such as a truss SPAR with an integrated drilling rig, dry trees, and 16 well slots.
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 planned for the end of 2004 with full production at design capacity expected to occur within 12 months. The field has an estimated life of 20 years. BHP Billiton holds a 23.9 per cent working interest in Mad Dog with partners BP (designated operator) 60.5% and Unocal 15.6%.
Click here to read the rest of today's news stories.