BP's Argos Extension Project: A Major Production Start-Up in the Gulf of Mexico

BP has started the Argos Southwest Extension project in the Gulf of Mexico, adding 20,000 barrels of oil equivalent per day to peak average annual production. The three-well subsea tieback was completed in 25 months, setting a new internal record. The project is part of BP's upstream growth strategy and marks the start of a cycle of deepwater expansion in the US.

BP PLC has initiated the Argos Southwest Extension project in the Gulf of Mexico, marking a significant milestone in its commitment to expanding US offshore energy production. The project, which began on Monday, will add 20,000 barrels of oil equivalent per day to the peak average annual production at the existing Argos platform [1].

Andy Krieger, BP's senior vice president for the Gulf of America and Canada, underscored the project's importance, stating, "The Argos expansion underpins our commitment to investing in America, growing our US offshore energy production safely and efficiently. This project also kicks off a period of significant growth for BP in the Gulf of America, which will continue to play a critical role in delivering secure and reliable energy the world needs today and tomorrow" [1].

The Argos Southwest Extension project involves the addition of three wells and a new drill center approximately five miles southwest of the Argos platform. The project was completed in 25 months, setting a new internal record for BP, seven months ahead of the initial schedule [1].

BP operates Argos with a 60.5% working interest, with co-owners including Woodside Energy Group Ltd (23.9%) and United Oil Co of California (an affiliate of Chevron USA Inc, 15.6%) [1]. Following the completion of the Argos Southwest Extension project, BP plans to proceed with the Atlantis drill center 1 expansion and the Atlantis major facility expansion as part of its broader upstream growth strategy.

The stock price of BP shares rose by 1.4% to 404.45 pence on Monday afternoon in London, reflecting investor sentiment towards the project [1].

References:
[1] https://www.marketscreener.com/news/bp-starts-up-argos-expansion-project-adding-20-000-barrels-a-day-ce7c5edadf8df224