NEW YORK Oil producer BP
Plc is reviewing the expansion of a major oil project in the
Gulf of Mexico, calling the investment "not as attractive as
previously modeled" thanks to market conditions and inflation,
the company said via e-mail.
The Mad Dog Phase 2 expansion
would include the drilling of 33 wet wells, according to the
"It is too early to speculate
when the details of the final plan will be approved by BP and
its co-owners," the company said, adding that the expansion is
"a world-class resource."
London-based BP still "fully
intends" to develop the project with the "right plan," it
The company operates Mad Dog and
holds a 60.5-percent working interest in the project, with BHP
Billiton Plc holding 23.9 percent and Chevron Corp. subsidiary
Unocal Corp. the remaining 15.6 percent, according to the
The review comes three years
after the Deepwater Horizon drill rig disaster, with the
company having spent more than $14 billion on cleanup efforts
as of Dec. 31, according to its website.