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BP puts Mad Dog project expansion on ice

Keywords: Tags  BP, Mad Dog Phase 2, Gulf of Mexico, Chevron, Unocal, BHP Billiton, Deepwater Horizon, oil Thorsten Schier

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 company’s website.

"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 said.

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 company’s website.

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.

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