Gulf of Mexico
Our Gulf of Mexico business is a crucial source of US energy security, an important provider of jobs and investment for the Gulf Coast region and an essential driver of our transformation as a company.
Powering bp’s transformation
Our resilient and focused hydrocarbons business is a key pillar in bp’s transformation into an integrated energy company. Not only will emissions reductions in that business be essential to helping us achieve our net zero ambition; the cash flows from our oil and gas production and refining activities will also allow us to invest in the energy transition.
“Resilient and focused” means hydrocarbons that can withstand lower prices and are connected to nearby, preexisting infrastructure.
Our Gulf of Mexico business exemplifies this approach, producing some of bp’s highest-value barrels anywhere in the world. We currently operate four Gulf of Mexico production platforms – Atlantis, Mad Dog, Na Kika and Thunder Horse – and plan to start up a fifth platform called Argos in 2022.
The numbers tell the story
bp’s net production was around 300,000 boe/d in the Gulf of Mexico for the first half of 2021
bp expects to produce 400,000 boe/d in the Gulf of Mexico by the mid-2020s
bp directly employs nearly 1,100 people through its Gulf of Mexico business
Over the past few years, we have brought several major Gulf projects online while using advanced technology to improve the safety, efficiency and sustainability of our operations. We applied technological breakthroughs in seismic imaging — made possible by our Center for High-Performance Computing in Houston — to discover 400 million barrels of oil equivalent of additional resources in place at our Atlantis field and 1 billion barrels of oil equivalent of additional resources in place at our Thunder Horse field.
In 2020, we completed startup work on our Atlantis Phase 3 project, a key component of our transformation into an integrated energy company. Phase 3 includes the construction of a new subsea production system for eight new wells tied into Atlantis. We expect it will increase gross platform production by more than 35,000 barrels of oil equivalent per day at its peak.
With this project, we were able to develop additional resources close to the current Atlantis platform, which allowed us to use existing infrastructure to access and deliver these barrels at low cost and in rapid time. This is a great example of how oil and gas projects support bp’s strategy by focusing our efforts in the basins we know best and close to existing infrastructure.
Our Gulf of Mexico team reached a number of milestones in 2021. One was the safe start-up of our Manuel project, which includes a new subsea production system for two new wells tied into the Na Kika platform. bp expects these wells to boost gross platform production by 20,100 barrels of oil equivalent per day.
In April 2021, we hit another milestone when bp’s Argos platform — the centerpiece of our $9 billion Mad Dog 2 project — arrived in Ingleside, Texas, after a 16,000-mile journey from South Korea.
A semi-submersible, floating production platform, Argos will be our fifth operated platform in the Gulf of Mexico — and our first new platform since Thunder Horse began production in 2008.
And in September 2021, we safely and successfully started-up our Thunder Horse South Expansion Phase 2 project. The Phase 2 project is expected to increase output at one of the largest fields in the Gulf of Mexico, with peak annual average gross production of 25,000 barrels of oil equivalent a day from the initial two well tieback. Eventually a total of eight wells are expected to be drilled as part of the project’s overall development. The Phase 2 start-up is part of bp’s plans to grow our Gulf of Mexico oil and gas production to around 400,000 barrels of oil equivalent a day net by the mid-2020s.