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Thursday, Sep 19
Report: BP cancels contracts for Gulf of Mexico project
- BP (BP -0.2%) has cancelled contracts to build a $10B extension to its Mad Dog oil project in the Gulf of Mexico, which had been expected to begin by the end of the year, Reuters reports.
- The extension project has been under review since April due to cost overruns and uncertainty surrounding oil prices.
- Two years ago an appraisal well in an undeveloped part of the Mad Dog field indicated it contained up to 4B boe, which prompted BP to make plans to build the second, bigger Mad Dog platform able to handle up to 130K bbl/day of oil.
- It is not clear if the cancellation could lead to a smaller, cheaper version of the project.