BHP Billiton Ltd. (NYSE: BHP) said Oct. 5 the second phase of its Mad Dog offshore joint venture with BP Plc (NYSE: BP) in the Gulf of Mexico (GoM) was economical at oil prices below $50 per barrel.

Originally slated for development in 2013, the project has been deferred due to low oil prices and moves to reduce construction costs.

After losing three-quarters of its value from mid-2014 to early 2016, West Texas Intermediate prices have rallied more than 80% since February to nearly $50 per barrel.