BP: 'No Estimate' for Return of Mad Dog Oil Field
HOUSTON Mar 05, 2007 (Dow Jones Newswires)
BP PLC (BP) has "no estimate" for when its 50,000-barrel-a-day Mad Dog oil field will resume production, a spokesman said Monday.
The field, whose platform is located about 190 miles south of New Orleans, was shut down Wednesday due to a mechanical failure.
BP is investigating the root of the failure, which involved the platform's water cooling system, said spokesman Nicola Montorsi.
"Until we are understanding the causal factor associated with the event, production will remain shut in," he said.
Mad Dog produces high-sulfur, or sour, crude that enters into the Southern Green Canyon blend. On the U.S. Gulf spot market, Southern Green Canyon has strengthened significantly since Mad Dog was shut down, from its usual range of $5.50 to $6 below front-month crude futures on the New York Mercantile Exchange to $5 in morning trading on Monday.
Copyright (c) 2007 Dow Jones & Company, Inc.
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