British energy major BP (NYSE:BP) is doubling down on its U.S. offshore strategy, moving forward with a $5 billion deepwater development in the Gulf of Mexico that underscores the company’s long-term commitment to oil production.
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The Tiber-Guadalupe Project
The newly approved Tiber-Guadalupe project marks BP’s second new production platform in recent years and represents a significant milestone in its deepwater portfolio. The platform will have the capacity to produce 80,000 barrels of crude oil per day, with development centered on:
- Six wells in the Tiber field.
- A two-well tieback from the Guadalupe field.
First oil is expected in 2030, with the Tiber floating production platform designed with over 85% similarity to the Kaskida platform, allowing BP to leverage engineering efficiencies and cut development costs.
Resources and Future Potential
The Tiber and Guadalupe fields are estimated to hold about 350 million barrels of oil equivalent recoverable in the initial phase. BP has signaled that additional wells could be drilled in subsequent phases, depending on reservoir performance and market conditions.
Cost Advantages Through Design Synergies
By reusing much of the Kaskida platform design, BP expects to lower development costs by about $3 per barrel compared to Kaskida. This strategy highlights the company’s push toward capital discipline while still pursuing ambitious growth projects.
Strengthening BP’s U.S. Offshore Footprint
With Tiber-Guadalupe and Kaskida joining its existing five platforms, BP expects its U.S. offshore output capacity to exceed 400,000 barrels of oil equivalent per day by 2030. This expansion positions the Gulf of Mexico as a core growth hub for BP, complementing its broader global upstream portfolio.
The Bigger Picture
As BP continues to balance its energy transition strategy with sustained investment in oil and gas, the Tiber-Guadalupe project reflects both the capital discipline and engineering innovation needed to deliver competitive returns in deepwater environments. With production costs trimmed and reserves sizable, the project is poised to play a central role in BP’s Gulf of Mexico growth story well into the next decade.
