
Oil major BP has made a final investment decision to proceed with an offshore project in the US waters of the Gulf of Mexico.
The Kaskida project will be the sixth hub that BP operates in the Gulf of Mexico. It will comprise a new floating production platform with six wells being drilled in the initial phase. BP anticipates production beginning in 2029, with it producing crude oil at a daily rate of 80,000 barrels per day during this first phase.
The Kaskida project is located about 250 miles southwest off the coast of New Orleans. BP believes it could pave the way for the potential recovery of 10 billion barrels of discovered resources in the Tiber and Kaskida areas.
The executive vice president for operations and production at BP, Gordon Birrell, said that the Paleogene’s potential in the Gulf of Mexico would be unlocked by developing Kaskida, adding to the company’s already extensive experience there. He also said:
“Technology has and will continue to play a pivotal role in propelling Kaskida from discovery to production. Together with the other resources we have in the Paleogene, we expect it to prove to be a world-class development. Today is a critical step in realising its potential.”
BP, which is the parent company of the Castrol lubricant and coolant business, owns the entire Kaskida field. It currently estimates that it could yield 275 million BOE (barrels of oil equivalent) in the first phase, but further evaluations could result in more wells being drilled.