bp has given the go-ahead for its Kaskida project in the U.S. Gulf of Mexico, a move which the company said demonstrates its long-term commitment to delivering 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,” 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.
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.
bp noted that 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.
“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,” the company wrote in a statement.
