French offshore contractor Technip has been awarded a front-end engineering design contract by BP for the second spar on its Mad Dog development in the Gulf of Mexico.
The contract covers the design of a Spar hull and mooring system and is the first award under the 10 year spar platform services agreement Technip signed with BP last year.
Technip said the spar would be located near the existing Mad Dog spar and installed on Green Canyon Block 782.
Detailed engineering for the new spar is scheduled to start during the second half of the year and Technip will execute the contract from its operating centre in Houston, Texas, with support from its centre in Pori, Finland.
BP has previously estimated the Greater Mad Dog area to hold 4 billion barrels of oil in place and at least 600 million boe in recoverable reserves.
Technip delivered the existing Mad Dog spar, which is capable of processing 80,000 barrels per day, to BP in 2004.
BP holds a 60.5% operated stake in Mad Dog and is partnered by BHP Billiton on 23.9% and Chevron with a 15.6% interest.