bp expands operations in the Gulf of Mexico with sixth oil field

BP plc

BRITISH multinational bp is adding a sixth oil field to its operations in the Gulf of Mexico, bringing its total production capacity to 940,000 bbl/d in the region.

The Kaskida hub is 100% owned by bp and will be located around 250 miles (402 km) off the coast of New Orleans, US. When up and running, bp expects it to have a production capacity of 80,000 bbl/d.

Gordon Birrell, bp’s executive VP of production and operations, said: “Developing Kaskida will unlock the potential of the Paleogene in the Gulf of Mexico for bp, building on our decades of experience in the region.”

Technological advancements

bp currently operates five platforms in the Gulf of Mexico – Argos, Atlantis, Mad Dog, Na Kika, and Thunder Horse. These sites produced around 300,000 boe/d in 2023.

The Kaskida field was discovered in 2006 and like bp’s Mad Dog hub, which is part owned by BHP and Chevron, will include a floating drilling platform.  

The project will be the first of bp’s operations in the Gulf region to produce reservoirs that require well equipment with a pressure rating of up to 20,000 pounds per square inch (psi), (14m kgf/m²). Typical well pressure for deepwater oil drilling ranges between 10,000 psi and 15,000 psi.

The company said in a statement: “bp plans to leverage existing platform and subsea equipment designs that can be replicated in future projects to drive cost efficiencies across Kaskida’s construction, commissioning, and operations.”

Gulf expansion

The new oil field is part of the company’s aim to tap into the vast oil resources found across the Kaskida and Tiber catchment regions.

bp said the new drilling technology will be used to safely develop Kaskida and its operations in the Tiber region, which it expects to reach a final investment decision on next year.

It estimates the area holds around 10bn barrels of oil, with Kaskida alone having the potential to create 275m barrels in its first phase.

Plans for expansion into deepwater oil production have been in motion since 2019, with bp planning to grow net Gulf production to around 400,000 boe/d in the next decade.

The company has set aside US$7bn in planned investment between 2022 and 2025 for the expansion.

Production at the Kaskida hub is expected to begin in 2029.