BP has received approval to move forward with development of the Kaskida deepwater oil project in the Gulf of Mexico, marking the company’s first new field development in the region since the 2010 Deepwater Horizon disaster. The project is expected to begin production in 2029 and is estimated to produce about 275 million barrels of oil equivalent during its initial phase.
The development centers on a floating production platform designed to produce up to 80,000 barrels of crude oil per day from six wells in its first stage. The project is wholly owned by BP and represents the company’s sixth operated hub in the Gulf of Mexico, reinforcing its long-term strategy to invest in high-margin deepwater resources in the basin.
Located in the Keathley Canyon area about 250 miles southwest of New Orleans, the Kaskida field is part of the broader Paleogene geological formation, an area that BP believes could ultimately unlock as much as 10 billion barrels of discovered resources in place across multiple nearby discoveries including Tiber.
BP discovered the Kaskida field in 2006 and has spent years working with the offshore industry to develop the high-pressure drilling technology required to produce from reservoirs in the Paleogene formation. The development will require well equipment capable of operating at pressures of up to 20,000 pounds per square inch, representing a new generation of deepwater drilling capability.
The company plans to use a simplified and standardized platform design that can be replicated across future Gulf projects, a strategy aimed at reducing construction costs, improving safety and accelerating development timelines for additional fields in the region.
BP has operated in the Gulf of Mexico for more than 60 years and currently runs five production platforms in the basin: Argos, Atlantis, Mad Dog, Na Kika and Thunder Horse. The company produced roughly 300,000 barrels of oil equivalent per day from the Gulf of Mexico in 2023.
KEY QUOTES:
“Developing Kaskida will unlock the potential of the Paleogene in the Gulf of Mexico for bp, building on our decades of experience in the region. Technology has and will continue to play a pivotal role in propelling Kaskida from discovery to production. Together with the other resources we have in the Paleogene, we expect it to prove to be a world-class development. Today is a critical step in realizing its potential.”
Gordon Birrell, Executive Vice President Of Production And Operations, BP
“By employing an industry-led design solution, Kaskida will be simpler to construct and simpler to operate, enhancing safety and delivering greater value for bp.”
Andy Krieger, Senior Vice President, Gulf Of Mexico And Canada, BP
