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Petroleum industry

BP Discovers New Oil in Mad Dog Complex

Strategic Insights

— 1 min read

BP PLC has announced a significant oil discovery in a previously untested part of its Mad Dog complex of oilfields in the U.S. Gulf of Mexico. The company's latest appraisal well, drilled by BHP Billiton PLC, has significantly increased the estimated oil and gas reserves in the complex, bringing the initial estimate to four billion barrels of oil equivalent. This latest find follows recent discoveries by Chevron and Exxon Mobil in the region and is part of a resurgence of oil exploration in the U.S. Gulf of Mexico.

Key Takeaways:

  • BP has discovered new oil in a previously untested part of its Mad Dog complex, increasing the estimated oil and gas reserves in the complex to four billion barrels of oil equivalent.
  • The latest appraisal well was drilled by BHP Billiton PLC on behalf of BP and encountered about 166 net feet of hydrocarbons.
  • The Mad Dog complex includes a field that has been producing since 2005, the Mad Dog South field, which was appraised in 2008 and 2009, and the latest find.
  • BP maintains a 60.5% working interest in Mad Dog, while BHP Billiton has a 23.9% interest, and Chevron has a 15.6% interest.
  • The discovery comes amid a resurgence of oil exploration in the U.S. Gulf of Mexico, following recent finds by Chevron and Exxon Mobil.

Statistics:

  • Four billion barrels of oil equivalent: the estimated oil and gas reserves in the Mad Dog complex.
  • 166 net feet: the length of hydrocarbons encountered in the latest appraisal well.
  • 80,000 barrels per day: the current production rate of the existing platform at the Mad Dog complex.
  • 140 miles: the distance of the latest appraisal well from Grand Isle, Louisiana.
  • 4,500 feet: the water depth of the mad Dog complex.
  • 2005: the year the Mad Dog North field began producing oil.
  • 2008 and 2009: the years the Mad Dog South field was appraised.

Sources:

  • Dow Jones Commodities News via Comtex (2011-09-07)
  • Dow Jones Newswires (2011-09-07)
  • Angel Gonzalez and Razak Musah Baba, Dow Jones Newswires (2011-09-07)
  • Dow Jones & Company, Inc. (2011)

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