BHP Billiton Limited (ASX: BHP) has announced its Board approved a US$2.2 billion investment for a deep water development in the Gulf of Mexico.
Led by BP, the development involves extending the existing Mad Dog oil field, of which BP holds a 60.5% stake in, while BHP holds 23.9%.
The expansion will have the ability to produce up to 140,000 gross barrels of crude oil per day.
BHP says it’s one of the largest, discovered and undeveloped resources in the Gulf of Mexico.
BHP also says it is an attractive investment opportunity and aligns with its strategic objective to build large, long-life, high quality resources.
Production is expected to begin in the 2022 financial year.
BHP Billiton Limited (ASX: BHP) reported a net loss of $8.36 billion at 30 June 2016.
