BP Plc, Europe’s second-largest oil company, said it’s reviewing plans to develop the Mad Dog 2 oil field in the Gulf of Mexico, citing market conditions and industry inflation.
BP is studying the existing plans and other options as it decides how to develop the project with co-owners BHP Billiton Ltd. and Chevron Corp. unit Union Oil Company of California, company spokeswoman Sheila Williams wrote in an e-mailed statement. The company, based in London, said it’s too early to say when the details of the final plan would be approved.
BP is facing the third anniversary of the 2010 oil spill in the Gulf of Mexico at its Macondo site, the biggest offshore spill in U.S. history. BP is the biggest oil producer in the Gulf and its best producing assets there are Thunder Horse, Atlantis and Mad Dog.
“The current development plan for Mad Dog Phase 2 is not as attractive as previously modeled,” Williams said. “BP fully intends to develop the resources at Mad Dog Phase 2 and is committed to moving forward with the right plan.”