The mining giant BHP Billiton is to invest $708m (£445m) to expand its Mad Dogjoint venture with BP and Chevron in the Gulf of Mexico. The new facility, an extension of the existing development dubbed Mad Dog Phase 2, is expected to produce about 130,000 barrels of oil a day and be up and running in 2018. The final investment decision for the venture, however, will not be made until next year.
BHP's announcement comes two months after BP said its board had approved funding for its share of the Mad Dog extension – estimated to be about $1.8bn. BP operates Mad Dog and has a 60.5 per cent share, while BHP owns 23.9 per cent. Chevron, the other venture partner, has a 15.6 per cent stake.