BP is betting big on the Gulf with a $5 billion offshore drilling project aimed at bolstering its U.S. production, Reuters reports.
The Tiber-Guadalupe development, which was announced on Monday, is some 300 miles southwest of New Orleans. Output from the project is expected to begin in 2030 with a floating platform producing up to 80,000 barrels per day. The fields hold an estimated 350 million barrels of recoverable resources, supporting BP’s goal of generating at least 400,000 barrels of oil equivalent per day (boepd) from the Gulf by 2030—up from 341,000 boepd last year.
The project advances BP’s strategic pivot away from renewables to oil and gas, targeting more than 1 million boepd in U.S. production by the end of the decade, nearly half its global goal. Leveraging design efficiencies, development costs will run about $3 per barrel lower than its Kaskida project. The move positions BP to close the performance gap with ExxonMobil and Shell.
