BP in $9bn offshore ‘Mad Dog’ project

Oil major BP has approved a $9bn (€8.5bn) investment in its ‘Mad Dog’ project in the Gulf of Mexico, its first major new platform in the region since a 2010 explosion at its Macondo well led to the worst offshore disaster in US history.

The decision shows confidence that the company can safely operate in the region and is a bet that oil produced in the deepwater offshore can compete with rival on-shore production.

The project’s costs have declined from over $20bn initially, to less than half that amount, BP said.