BP Plc has given the green light to a massive $5 billion oil and gas project in the Gulf of Mexico, signaling a strong commitment to offshore drilling as a key driver of future growth. The Tiber-Guadalupe development, located approximately 300 miles southwest of New Orleans, is slated to commence production in 2030 and is projected to yield up to 80,000 barrels of crude oil per day.
This ambitious project will be BP's seventh operated hub in the Gulf and its second new platform in under two years. It consolidates six wells in the Tiber field with two tiebacks from the Guadalupe field, forming a pivotal component of the company's upstream expansion strategy. The development is anticipated to recover around 350 million barrels of oil equivalent during its initial phase, with potential for further drilling activities.
Andy Krieger, BP's senior vice president for the Gulf of America and Canada, emphasized the company's long-term dedication to the region, highlighting Tiber-Guadalupe's crucial role in delivering "secure and reliable energy the world needs today and tomorrow." BP anticipates that this new hub, in conjunction with its five existing operated platforms, will boost Gulf output to over 400,000 barrels of oil equivalent per day by 2030.
The project also reflects a strategic shift for BP, focusing more on oil and gas production to achieve over 1 million barrels of oil equivalent per day in U.S. production by the end of the decade. By leveraging design efficiencies from its Kaskida project, BP aims to lower development costs by approximately $3 per barrel, positioning itself to better compete with industry giants like ExxonMobil and Shell.
Key Highlights of the Tiber-Guadalupe Project:
- $5 billion investment in Gulf of Mexico oil and gas development.
- Expected production of 80,000 barrels of crude oil per day starting in 2030.
- Estimated recoverable resources of 350 million barrels of oil equivalent.
- Aims to boost BP's Gulf output to over 400,000 barrels of oil equivalent per day by 2030.
- Strategic shift towards increased oil and gas production in the U.S.