bp just turned on the taps at Cypre gas project—here’s how it could reshape Trinidad’s energy future

bp Trinidad and Tobago has officially begun gas production at the Cypre development, marking a key milestone in the British energy giant’s broader upstream reset strategy. The project, located offshore Trinidad, is one of ten major developments that bp aims to bring online globally between 2025 and 2027. These are projected to collectively deliver 250,000 barrels of oil equivalent per day (boed) at peak combined production.

The Cypre gas project represents a significant step forward for both bp and Trinidad and Tobago. For bp, it is a clear indicator that the company is doubling down on its core oil and gas operations after a period of strategic recalibration. For Trinidad and Tobago, the start of production comes at a time when the nation is working to maintain energy security and meet gas supply commitments to the local LNG and petrochemical sectors.

Production from the Cypre gas field will ramp up as the project moves through its multi-phase execution. The initial phase—comprising four completed wells—was finalised in late 2024. The second phase, involving three more wells, is expected to begin in the second half of 2025. Once fully operational, the project is expected to produce about 45,000 boed, translating to around 250 million standard cubic feet of gas per day.

Where is the Cypre gas project located and how does it operate?

The Cypre gas project is situated approximately 78 kilometres off the southeast coast of Trinidad, within the East Mayaro Block. It lies in water depths of around 80 metres and benefits from proximity to existing offshore infrastructure. Specifically, the field has been developed as a subsea tieback to bp Trinidad and Tobago’s Juniper platform, allowing for capital-efficient deployment with minimal environmental and logistical footprint.

This model of subsea development is increasingly common among energy producers seeking to extract remaining value from mature basins while controlling costs and accelerating time-to-first-gas. By avoiding the need for a standalone production platform, the Cypre gas project exemplifies how existing assets can be leveraged to deliver new production volumes quickly and safely.

Cypre also marks bp Trinidad and Tobago’s third major subsea development, following previous efforts at similar projects. The use of modular engineering and streamlined well architecture has enabled faster deployment and more predictable performance, contributing to the project’s successful delivery.

How does Cypre align with bp’s global upstream reset strategy?

The Cypre gas project forms a cornerstone of bp’s global upstream ambitions, particularly as the company reorients its capital expenditure toward projects that offer near-term cash flow and low-carbon intensity. After facing investor pushback over the speed and cost of its energy transition strategy, bp has recently doubled down on its core hydrocarbon assets, arguing that natural gas will continue to play a vital role in the global energy mix.

William Lin, Executive Vice President for gas and low carbon energy at bp, has said the company’s focus remains on “consistent execution and safe delivery” of major upstream projects like Cypre. The Trinidad development is the second of ten global upstream projects scheduled to be brought online by 2027 and the first of several planned for the region.

The upstream reset is a critical part of bp’s strategy to generate stable earnings while supporting the broader transition to cleaner energy. Natural gas, in particular, is viewed as a bridge fuel that can displace coal in power generation and complement renewables in grids with variable solar and wind output. In this context, the Cypre subsea development is not just about volumes—it also fits into bp’s narrative of delivering lower-carbon energy at scale.

What does the project mean for Trinidad and Tobago’s energy landscape?

For Trinidad and Tobago, the Cypre offshore development comes at a pivotal time. The country has experienced a gradual decline in domestic gas production over the past decade, driven by reservoir depletion and limited new field development. Given the importance of gas to the nation’s economy—supplying liquefied natural gas (LNG), ammonia, methanol, and other downstream industries—securing new sources of supply has been a priority.

David Campbell, President of bp Trinidad and Tobago, described the Cypre field as a key part of the company’s strategy to maximise shallow water production using existing infrastructure. He added that the project will support bp’s domestic gas supply obligations while reinforcing the company’s long-standing partnership with the Trinidadian government.

With 12 offshore platforms, three subsea installations, and two onshore processing facilities already in operation, bp Trinidad and Tobago remains the country’s largest energy producer. The new gas volumes from Cypre will help address current shortfalls and extend the productive life of critical downstream plants, many of which are operating below capacity due to feedstock constraints.

How is bp’s stock performing amid strategic changes and production gains?

Despite the operational success of projects like the Cypre gas field, market sentiment toward BP p.l.c. (NYSE: BP) has remained cautious. As of April 2, 2025, the company’s shares fell 7% to close at $31.43, significantly underperforming broader equity markets. The decline follows February’s announcement that bp would reduce its renewables investments and re-focus on higher-return hydrocarbon projects.

This strategy shift has attracted mixed reactions. Some investors have welcomed the renewed emphasis on profitability and upstream returns, while others have questioned whether bp is abandoning its net-zero commitments too quickly. The activation of the Cypre gas project, which complements the recent start-up of Egypt’s Raven field, reflects the company’s attempt to deliver on both financial and energy security goals.

Further complicating matters is the involvement of Elliott Investment Management, which recently acquired a near 5% stake in bp and is pushing for deeper strategic reforms. Analysts have suggested that bp could consider asset sales or restructuring to enhance shareholder value, although no specific measures have been confirmed by the company.

At present, most market observers maintain a ‘Hold’ rating on BP shares, citing uncertainties around execution, regulatory scrutiny, and commodity price volatility. However, continued delivery of high-impact upstream projects such as the Cypre gas development could help rebuild investor confidence over time.

What are the long-term implications of the Cypre project for bp and global energy markets?

The successful delivery of the Cypre gas project sends a strong signal about bp’s ability to execute complex upstream developments in mature basins. It also underscores the enduring relevance of natural gas in the global energy mix, particularly in regions like the Caribbean, where demand for low-carbon, flexible, and exportable energy remains high.

By integrating the Cypre offshore development into its broader portfolio, bp gains operational and financial advantages. The project fits well within the company’s capital expenditure limits and meets its internal rate-of-return benchmarks, even under conservative commodity price scenarios. It also reinforces bp’s long-standing presence in Trinidad and Tobago—a country that continues to play a pivotal role in regional gas exports.

Looking ahead, the success of the Cypre project is likely to influence bp’s strategy in other regions with similar geological and operational conditions. It may also shape broader industry practices around subsea tiebacks and modular development approaches, as producers seek to unlock stranded gas resources with minimal environmental impact and maximum economic efficiency.