1. Home
  2. News and insights
  3. Press releases
  4. bp gives go-ahead for sixth operated hub, Kaskida, in the US Gulf of Mexico

bp gives go-ahead for sixth operated hub, Kaskida, in the US Gulf of Mexico

Release date:
30 July 2024
  • Strategic growth project represents bp’s ongoing commitment to invest in this prolific high-margin basin, an important element of growing the value of bp 
  • New platform expected to have nameplate production capacity of 80,000 barrels of oil per day
  • Hub to leverage simplified, standardized and cost-efficient design, planned to be replicated in future projects
  • Unlocks potential for development of 10 billion barrels of discovered resources in place in Gulf of Mexico Paleogene 
A rendering of a floating platform in the Gulf of Mexico

HOUSTON – bp has taken a final investment decision on the Kaskida project in the US Gulf of Mexico. This demonstrates bp’s long-term commitment to deliver secure, affordable and reliable energy. 

 

Kaskida will be bp’s sixth hub in the Gulf of Mexico, featuring a new floating production platform with the capacity to produce 80,000 barrels of crude oil per day from six wells in the first phase. Production is expected to start in 2029.  

 

“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.”

 

Gordon Birrell, bp’s executive vice president of production and operations

 

“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,” said Gordon Birrell, bp’s executive vice president of production and operations. 


“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 realizing its potential.“

 

Owned 100% by bp, the Kaskida field has discovered recoverable resources currently estimated at around 275 million barrels of oil equivalent from the initial phase. Additional wells could be drilled in future phases, subject to further evaluation.


The project is fully accommodated within bp’s disciplined financial framework, reflecting bp’s drive to focus on value and returns.


Located in the Keathley Canyon area about 250 miles southwest off the coast of New Orleans, the Kaskida project unlocks the potential future development of 10 billion barrels of discovered resources in place across the Kaskida and Tiber catchment areas. 


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. 


“By employing an industry-led design solution, Kaskida will be simpler to construct and simpler to operate, enhancing safety and delivering greater value for bp,” said Andy Krieger, bp’s senior vice president, Gulf of Mexico and Canada.  


Kaskida is in a prime location, with a stable fiscal regime and access to market. It will also be bp’s first development in the Gulf of Mexico to produce from reservoirs that will require well equipment with a pressure rating of up to 20,000 pounds per square inch (20K).


Advancements in 20K drilling technology coupled with updated seismic imaging are enabling bp to safely develop Kaskida and to progress plans to develop other fields such as Tiber, which is expected to advance to a final investment decision next year.


Today’s announcement demonstrates bp’s near-term priorities in action - moving forward a key high-value growth project and supporting its drive to deliver as a simpler, more focused, higher value company. 

Notes to editors

 

  • bp discovered the Kaskida field in 2006 and has since worked closely with the offshore industry to help develop 20K rig technology necessary to complete high-pressure wells.
  • Kaskida, Tiber and nearby discoveries combined have an estimated 10 billion barrels of discovered resources in place. 
  • bp is one of the leading producers in the Gulf of Mexico with more than 60 years of experience operating in the basin.
  • bp operates five platforms in the Gulf of Mexico: Argos, Atlantis, Mad Dog, Na Kika and Thunder Horse.
  • bp produced circa 300,000 barrels of oil equivalent per day from the Gulf of Mexico in 2023.
  • Additional information about bp’s next wave of deepwater projects in the Gulf of Mexico can be found here.

Further information

 

Contacts

 

bp press office, London: bppress@bp.com
US press office: uspress@bp.com

Cautionary statement

 

In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the general doctrine of cautionary statements, bp is providing the following cautionary statement. 

 

This document contains certain forecasts, projections and forward-looking statements – that is, statements related to future, not past events and circumstances – with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements are generally, but not always, identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘targets’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. In particular, the following, among other statements, are all forward looking in nature: plans, expectations and assumptions regarding oil and gas demand, supply, prices or volatility; expectations regarding reserves; expectations regarding production and volumes; and expectations and plans for future final investment decisions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp. Actual results or outcomes, may differ materially from those expressed in such statements, depending on a variety of factors, including changes in public expectations and other changes to business conditions; the receipt of relevant third-party and/or regulatory approvals; future levels of industry product supply; demand and pricing; operational problems; regulatory or legal actions; economic and financial conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the actions of competitors, trading partners and others; natural disasters and adverse weather conditions; wars and acts of terrorism, cyber-attacks or sabotage; and the risk factors discussed under “Risk factors” in bp’s most recent Annual Report and Form 20-F as filed with the US Securities and Exchange Commission and in any of our more recent public reports.

 

Our most recent Annual Report and Form 20-F and other period filings are available on our website at www.bp.com, ‎or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov.‎

 

This document contains references to non-proved resources and production outlooks based on non-proved resources that the SEC's rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-0626