BHP Expected to Spend Big Bucks on Mad Dog

BHP is set to commit $300 million to the development of the Mad Dog field in the Gulf of Mexico. Final investment approval this month would mean first oil production could be reached by the end of 2004. Mad Dog is a key part of BHP strategy to boost production in the U.S. Gulf of Mexico.

The production facility will have a capacity of roughly 80,000 barrels a day and 40 million cubic feet of gas a day. Results of the Mad Dog 4 appraisal well indicated a hydrocarbon reserve size estimated at 200 million to 450 million barrels of oil equivalent.

BHP holds a 23.9 percent interest in the eight block Mad Dog field with BP holding 60.5 percent and Unocal Corp 15.6 percent.