LONDON, April 19 BP said it was delaying
a major oil project in the Gulf of Mexico as rising costs make
current development plans difficult to justify.
"The current development plan for Mad Dog Phase 2 is not as
attractive as previously modeled, due largely to market
conditions and industry inflation," the company said in a
The UK major, in cooperation with co-owners Union Oil
Company of California, a wholly owned subsidiary of Chevron
Corp., and BHP Billiton Petroleum , is
now evaluating how to develop the project.
"BP fully intends to develop the resources at Mad Dog Phase
2 and is committed to moving forward with the right plan," it
said. "It is too early to speculate when the details of the
final plan will be approved by BP and its co-owners."
The Mad Dog oilfield, which could contain up to 4 billion
barrels of oil equivalent (boe), is one of BP's flagship
developments in the Gulf of Mexico.