BP (LSE:BP.) announced on Monday that it will proceed with a $5 billion offshore drilling venture in the U.S. Gulf of Mexico, named Tiber-Guadalupe. The decision underscores BP’s renewed focus on its core oil and gas operations.
The project is slated to start producing oil and gas in 2030, featuring a new floating production platform capable of handling up to 80,000 barrels of crude per day.
After lagging behind peers such as Shell and Exxon Mobil in recent years, partly due to increasing debt, BP revealed in February plans to scale back renewable energy investments and expand oil and gas output to revitalize its operations and regain investor confidence.
The U.S. Gulf region is central to this strategy, with BP targeting production of at least 400,000 barrels of oil equivalent per day by 2030, up from 341,000 boepd recorded last year.
The Tiber-Guadalupe platform will tap into the Tiber and Guadalupe fields, located roughly 300 miles (480 km) southwest of New Orleans, which together are estimated to contain around 350 million barrels of recoverable oil equivalent resources.
This will be BP’s second project in the Gulf capable of producing under ultra-high pressures of 20,000 pounds per square inch, representing a major technological milestone for the company.
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