bp has committed to a new venture in the US offshore region, underscoring the area’s critical role in the company’s long-term global strategy. The firm has reached a final investment decision for the Tiber-Guadalupe project in the Gulf of America, marking the approval of its second new production platform in the area in under two years. This substantial commitment further solidifies the Gulf of America as a cornerstone of bp’s upstream development plans.
The Tiber-Guadalupe project, which is entirely owned and operated by bp, is slated to become the company’s seventh operational oil and gas production hub in the Gulf. This ambitious development centers on the construction of a new floating production platform designed to handle a substantial daily output of 80,000 barrels of crude oil. The initial scope of work encompasses the drilling of six wells in the Tiber field and the integration of a two-well tieback from the nearby Guadalupe field. Current estimates indicate that production from this new hub is expected to commence in 2030.
Initial assessments of the Tiber and Guadalupe fields indicate a recoverable resource base of approximately 350 million barrels of oil equivalent from this first phase of development. The project is designed with future flexibility, allowing for additional wells to be drilled in subsequent phases should further evaluations support the expansion of operations.
The estimated capital expenditure for the Tiber-Guadalupe project stands at $5 billion. This investment, however, is fully aligned with and accommodated within bp’s current disciplined financial framework. The project is one of a portfolio of eight to ten major global projects that bp anticipates will begin operations worldwide between 2028 and 2030, reflecting a clear strategy to expand its upstream business and generate long-term value for its shareholders. This investment, combined with the entirely bp-owned Kaskida project, means the company expects to invest approximately $10 billion to realize its Paleogene developments in the Gulf of America fully.
Both Tiber-Guadalupe and Kaskida are considered central components of bp’s strategic plan for new construction in the deepwater Gulf of America. When operational, these new hubs, alongside bp’s five existing operating platforms in the Gulf, are expected to boost the company’s production capacity significantly. By 2030, bp aims to increase its output from the US offshore region to more than 400,000 barrels of oil equivalent per day. Furthermore, the company has set a broader target to increase its total combined offshore and onshore production across the entire United States to exceed 1 million barrels of oil equivalent per day by the same year.
A key element of the Tiber-Guadalupe project’s financial planning is a focus on efficiency and cost management. bp is strategically utilizing existing design blueprints for both platform structures and subsea equipment, a move intended to generate cost efficiencies throughout the project’s construction, commissioning, and eventual operations. The company anticipates that development costs for the Tiber project will be approximately $3 per barrel lower than those of the Kaskida project, primarily due to the substantial design synergy achieved by utilizing more than 85% of the engineering and design elements developed for the Kaskida hub.
KEY QUOTES:
“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.”
Andy Krieger, bp’s senior vice president, Gulf of America and Canada.
“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. Along with its sister project Kaskida, Tiber-Guadalupe will play a critical role in bp’s focus on delivering secure and reliable energy the world needs today and tomorrow.”
Andy Krieger, bp’s senior vice president, Gulf of America and Canada
“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. Together with our Kaskida project in the Paleogene, we expect Tiber-Guadalupe will be another world-class development.”
Gordon Birrell, bp’s executive vice president of production and operations
