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BP Begins Production at Mad Dog in Deepwater Gulf of Mexico

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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. The facility is designed to process approximately 100,000 barrels of oil and 60 million standard cubic feet of gas per day.

"We are excited that Mad Dog has commenced production. Bringing this challenging field into operation on-time is a significant achievement, made possible through excellent teamwork and partnership," said David Eyton, vice president of BP's Gulf of Mexico Deepwater Business Unit. "It represents another major milestone for BP in the Gulf of Mexico and will contribute significantly to our production growth in the region."

The Mad Dog development consists of a truss spar, equipped with facilities for simultaneous production and drilling operations. Oil from Mad Dog will be transported via the Caesar pipeline to Ship Shoal 332B, where it will interconnect with the Cameron Highway Oil Pipeline System (CHOPS). Mad Dog gas will be exported via the Cleopatra pipeline to Ship Shoal 332A, where it will interconnect with Manta Ray Gathering System, and from there to the Nautilus Gas Transportation System into Louisiana. Both Caesar and Cleopatra pipelines are part of the BP-operated Mardi Gras Transportation System.

Mad Dog was discovered in 1998. Construction of the spar components and topsides commenced during 2001 in Pori, Finland and Morgan City, La.

BP is the Operator of Mad Dog with a 60.5% working interest. BHP Billiton owns a 23.9% working interest and Unocal owns a 15.6% working interest.

Mad Dog is one of three world-class BP-operated Gulf of Mexico deepwater developments scheduled for start-up this year and next. In addition to Mad Dog, Thunder Horse is scheduled for start-up later this year, followed by Atlantis in 2006. A fourth world-class project, Holstein, commenced production in December 2004. All these fields link into the Mardi Gras Transportation System.
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