BP Okays $1.3B Expansion in Gulf of Mexico
BP has approved a $1.3 billion expansion for the Atlantis Phase 3 development in the U.S. Gulf of Mexico, the company announced Tuesday.
The development, which includes the construction of a new subsea production system from eight new wells, will boost production at the platform by as much as 38,000 barrels of oil equivalent per day (boepd).
The approval for the Atlantis Phase 3 development is timed great for BP as the supermajor recently discovered an additional 400 million barrels of oil at the Atlantis field. The project is scheduled to come onstream in 2020.
Additionally, BP announced that another one billion barrels of oil have been identified at the Thunder Horse field as well as two new discoveries near the Na Kika production facility.
“BP’s Gulf of Mexico business is key to our strategy of growing production of advantaged high-margin oil,” said BP Upstream chief executive Bernard Looney. “And these fields are still young – only 12 percent of the hydrocarbons in place across our Gulf portfolio have been produced so far.”
Looney added that the company sees “many opportunities” for further development through the middle of the next decade and beyond.
BP’s two discoveries near the Na Kika facility – the Manuel discovery located on Mississippi Canyon block 520 and the Nearly Headless Nick discovery located on Mississippi Canyon block 387 – could provide further tie-back development opportunities.
BP’s net production in the Gulf of Mexico has increased significantly over the past five years. The area currently produces more than 300,000 barrels of oil equivalent per day.
BP expects its production to grow to 400,000 barrels of oil equivalent per day through the middle of the next decade – fueled by recent project startups, including Thunder Horse Northwest and Thunder Horse South expansions and the Thunder Horse Water Injection project, as well as the addition of the Argos platform platform at the Mad Dog field.
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