Korean yard Samsung Heavy Industries has won a contract to supply a floating production unit for BP’s Mad Dog II project in the Gulf of Mexico, a media report said.
Samsung said on its website that the order was worth $1.27billion and came from “the Americas”, but did not identify the client.
But Korean news agency Yonhap reported today that the recipient of the rig would be BP and that it would be deployed on Mad Dog II.
Samsung said the 108,000 tonne vessel would be capable of producing 110,000 barrels of crude oil and 25 million cubic feet of natural gas a day.
It will be moored six miles to the south-west of the existing Mad Dog platform.
BP sanctioned phase two of Mad Dog last month after more than halving costs.
The first phase of Mad Dog has been in production off Louisiana for more than a decade, but in 2009 BP discovered more oil in the southern section of the field.
BP and its project partners had been working to get the project costs down from $20billion to below $10billion.
The firm said in December that the sticker price for Mad Dog 2 had been lowered to $9billion.
First oil from phase two is expected in late 2021.
BP holds the operatorship and 60.5% of the project.
Field partner BHP Billiton holds 23.9% while Union Oil Company of California, an affiliate of Chevron USA, is on 15.6%.
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