BP, Europe's second-largest oil company, said today the Mad Dog field in the Gulf of Mexico may hold 4 billion barrels of recoverable oil equivalent, more than double the previous estimate of 1.5 billion barrels. Mad Dog is one of BP's first new Gulf projects since Gulf spill of 2010, the largest oil spill in U.S. history.
BHP Billiton (BHP), the world's largest mining company, and Chevron (CVX), the second-largest U.S. oil company, are BP's partners on Mad Dog. BHP Billiton drilled the well.
''Coupled with the recent exploration success at the discovery at the Moccasin prospect, located in Keathley Canyon, the Mad Dog result re-emphasizes the exploration and development potential of the Gulf of Mexico,'' BP CEO Bob Dudley said, according to Bloomberg News.
The Mad Dog news comes at a time when BP (BP) investors are growing pensive about Dudley's efforts to turn the company around. The news is also easily the best the British oil giant has seen recently. In the past week, the company finally lost out on working with OAO Rosneft in Russia, saw its Moscow office raided and was hit with a lawsuit from a contractor on the Deepwater Horizon rig.