BP greenlights sixth Gulf of Mexico hub with Kaskida project

British Petroleum (BP) has made a landmark decision to proceed with its Kaskida project, marking the establishment of its sixth hub in the US Gulf of Mexico. This ambitious move underscores BP’s dedication to delivering secure, affordable, and reliable energy while reinforcing its long-term commitment to the region’s development.

Kaskida’s Production and Development

Kaskida will introduce a new floating production platform capable of producing 80,000 barrels of crude oil per day from six wells during its initial phase. Production is slated to commence in 2029. BP’s Executive Vice President of Production and Operations, Gordon Birrell, highlighted the project’s role in unlocking the Paleogene potential in the Gulf of Mexico, drawing on the company’s extensive regional experience. He emphasized the crucial role of technology in advancing Kaskida from discovery to production, projecting it to be a world-class development.

BP greenlights Kaskida, its sixth Gulf of Mexico hub, with a floating production platform set for 2029.

The Kaskida field, owned entirely by BP, currently has recoverable resources estimated at approximately 275 million barrels of oil equivalent for the initial phase. Further evaluation could lead to additional wells in subsequent phases. The project adheres to BP’s rigorous financial framework, demonstrating the company’s focus on value and returns.

Strategic Significance and Technological Advances

Located in the Keathley Canyon area, about 250 miles southwest of New Orleans, the Kaskida project has the potential to develop up to 10 billion barrels of discovered resources across the Kaskida and Tiber catchment areas. BP plans to employ existing platform and subsea equipment designs for cost efficiencies in construction, commissioning, and operations.

Andy Krieger, BP’s Senior Vice President for the Gulf of Mexico and Canada, stated that the project’s industry-led design solution will simplify construction and operations, enhancing safety and delivering greater value. Kaskida will be BP’s first Gulf of Mexico development to utilize well equipment with a pressure rating of up to 20,000 pounds per square inch (20K), leveraging advancements in drilling technology and updated seismic imaging.

Broader Impact and Future Prospects

The Kaskida project is a testament to BP’s strategic priorities, advancing a high-value growth project and supporting its transition to a more focused, higher-value company. The new platform will contribute to BP’s ongoing investment in the prolific Gulf of Mexico basin, a key area for high-margin resource development.

BP’s Kaskida, Tiber, and adjacent discoveries together boast an estimated 10 billion barrels of discovered resources. With over 60 years of experience in the Gulf of Mexico, BP operates five platforms in the region and produced approximately 300,000 barrels of oil equivalent per day in 2023.

BP’s Strategic Move in the Gulf of Mexico

In an exclusive analysis, industry experts affirm that BP’s decision to develop Kaskida reflects a strategic focus on high-margin assets and technological innovation. The project is expected to set a new benchmark for offshore oil production, demonstrating BP’s ability to adapt and thrive in a competitive market.