BP and project partners Chevron and BHP Billiton are reviewing plans for Mad Dog Phase 2 in the Gulf of Mexico. BP said it was wary to move ahead because of market conditions and industry inflation.
Mad Dog Phase 2 included the development of as many 60 wells that would lead to the production of 130,000 barrels of oil per day.
BP told energy reporting website Rigzone it was too early to declare the project dead, however.
"It is too early to speculate when the details of the final plan will be approved by BP and its co-owners," the company said.
BP, Halliburton and Transocean are defending themselves in court in a case that aims to figure out which party is to blame for the 2010 oil spill in the Gulf of Mexico.
U.S. lawmakers last week proposed legislation that would open more areas near the maritime border with Mexico to energy explorers, however.
A U.S.-Mexico agreement signed last year called for a joint inspection team to ensure compliance with applicable safety and environmental laws in the maritime area.
Notable deaths of 2014 [PHOTOS]