BP Greenlights $5 Billion Tiber-Guadalupe Project in US Gulf of Mexico
BP has made a final investment decision on the Tiber-Guadalupe project in the Gulf of Mexico, a $5 billion offshore drilling venture that underscores the company's commitment to growing its oil and gas business. Production is expected to commence in 2030, with an estimated capacity of 80,000 barrels of crude oil per day.
Project Overview and Significance
The Tiber-Guadalupe project will be BP’s seventh operated oil and gas production hub in the Gulf of America. This initiative includes six wells in the Tiber field and a two-well tieback from the Guadalupe field. It represents a significant step in BP's strategy to increase its upstream production and boost its U.S. output.
Andy Krieger, BP’s senior vice president, Gulf of America and Canada, stated, “Our decision to move forward on the Tiber-Guadalupe project is a testament to our commitment to continue investing in the Gulf of America and expand our energy production from one of the premier basins in the world."
Financial and Production Details
The initial phase of the Tiber and Guadalupe fields is projected to yield approximately 350 million barrels of oil equivalent in recoverable resources. BP anticipates development costs for Tiber-Guadalupe to be approximately $3 per barrel lower than its nearby Kaskida project, owing to the utilization of 85% of the same design. BP aims to increase its offshore and onshore production in the United States to more than 1 million barrels of oil equivalent per day by 2030.
Strategic Context and Long-Term Goals
The Tiber-Guadalupe project is one of the 8-10 major projects that BP plans to start up globally between 2028 and 2030. This project reflects BP's strategic pivot to refocus on its core business of producing oil and gas, aiming for 10 new major upstream projects to start up by the end of 2027, and a further 8–10 projects by the end of 2030. The company aims to boost its Gulf production to a minimum of 400,000 boepd by 2030, a substantial increase from last year’s 341,000 boepd.
Technological Advancements and Safety Measures
The Tiber-Guadalupe project will be BP’s second project in the Gulf of Mexico to utilize ultra-high pressures of 20,000 pounds per square inch, representing a significant technological advancement. The project employs 20K technology, including larger drilling rigs, subsea equipment, and thicker metal casing. These advancements are designed to safely manage wells with extreme pressures.
Perspectives from BP Executives
Gordon Birrell, BP’s executive vice president of production and operations, commented, "Tiber-Guadalupe represents a significant step forward in our efforts to unlock the potential of the Paleogene in the Gulf of America, building on our decades of experience in the region." He further added, “Together with our Kaskida project in the Paleogene, we expect Tiber-Guadalupe will be another world-class development.”
