BP Approves $5 Billion Tiber-Guadalupe Offshore Drilling Project in Gulf of Mexico

BP has approved a $5 billion offshore drilling project, the Tiber-Guadalupe project, in the US Gulf of Mexico. The project will have a production platform with the capacity to produce up to 200 million cubic feet of natural gas and 30,000 barrels of oil per day. BP has partnered with BHP and Chevron on the project, which is expected to start production in 2025. The Tiber-Guadalupe project is BP's second new production platform in the US Gulf of Mexico, following the Mad Dog 2 project.

British oil major BP has approved a $5 billion offshore drilling project in the US Gulf of Mexico, known as the Tiber-Guadalupe project. The project, which will involve a floating production platform, is expected to start production in 2025. The platform will have the capacity to produce up to 200 million cubic feet of natural gas and 30,000 barrels of oil per day.

The Tiber-Guadalupe project is BP's second new production platform in the US Gulf of Mexico, following the Mad Dog 2 project. The project is part of BP's strategic shift to focus on its core oil and gas business, following underperformance by rivals like Shell and Exxon Mobil in recent years. BP aims to increase its oil and gas production in the Gulf of Mexico to at least 400,000 barrels of oil equivalent per day by 2030.

The project will develop the Tiber and Guadalupe fields, located about 300 miles southwest of New Orleans. These fields are estimated to hold about 350 million barrels of oil equivalent in recoverable resources. The Tiber-Guadalupe project will be BP's second project to produce from ultra-high pressures of 20,000 pounds per square inch, a technological advancement first achieved by Chevron's Anchor project last year.

Development costs for the Tiber-Guadalupe project are expected to be about $3 per barrel lower than BP's nearby Kaskida project, thanks to design synergies. The project is part of BP's broader plans to invest $10 billion in the Paleogene area and increase its total US production, offshore and onshore, to more than 1 million barrels of oil equivalent per day by 2030.