Oil Flows from Third Phase of Na Kika

Oil production from the third phase of BP plc’s Na Kika field development project in the deepwater Gulf of Mexico began flowing earlier this month.

Production the first well of Phase 3 started producing oil Feb. 19, BP said in a Feb. 24 press release. A second well is expected to begin production in the second quarter of this year.

The Na Kika semisubmersible platform is located approximately 140 miles southeast of New Orleans, La., at Mississippi Canyon Block 474 in 6,300 feet of water, according to Rigzone’s field development database SubseaIQ. Production first began in 2003 from the $1.5 billion joint venture Na Kika project, which is the first hub to develop a group of fields, all of which are small to medium size.   

BP is operator of Na Kika with 50 percent working interest; Royal Dutch Shell plc holds the remaining 50 percent interest.

Na Kika is BP’s third major upstream project to start production this year. Earlier this year, production began at the Chirag oil project in Azerbaijan and the Mars B project in the deepwater Gulf. The company expects to initiate production from three additional upstream projects during the rest of 2014.

“The Na Kika Phase 3 project demonstrates BP’s ongoing commitment to the deepwater Gulf of Mexico and highlights our portfolio’s ability to unlock value for investors while also delivering vital energy resources for the United States,” said Richard Morrison, regional president of BP’s Gulf of Mexico business, in a Feb. 24 press release.

The company plans significant investment in the deepwater Gulf, where it will focus on four major operated production hubs, including Na Kika, Thunder Horse, Atlantis and Mad Dog, as well as investment in non-operated production hubs that include Mars, Ursa and Great White.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com


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