BP has announced plans for a major expansion at the Atlantis field in the US Gulf of Mexico where the presence of an additional 400 million barrels of oil was revealed.
The company has also identified significant additional oil resources that are expected to create further development opportunities around its production hubs.
BP Upstream chief executive Bernard Looney said: “BP’s Gulf of Mexico business is key to our strategy of growing production of advantaged high-margin oil.
“And these fields are still young – only 12% of the hydrocarbons in place across our Gulf portfolio have been produced so far. We can see many opportunities for further development, offering the potential to continue to create significant value through the middle of the next decade and beyond.”
As part of the $1.3bn Atlantis Phase III development, a new subsea production system will be constructed from eight new wells that will be tied into the existing platform located 150 miles south of New Orleans.
The project is scheduled to become operational next year and is expected to increase production at the platform by an estimated 38,000 barrels of oil equivalent a day (boed) gross at its peak.
BP Gulf of Mexico and Canada regional president Starlee Sykes said: “Atlantis Phase III shows how our latest technologies and digital techniques create real value – identifying opportunities, driving efficiencies and enabling the delivery of major projects.
“Developments like this are building an exciting future for our business in the Gulf.”
The company’s net production in the Gulf of Mexico has increased by more than 60% over the last five years.
BP’s production is expected to grow to around 400,000boed through the middle of the next decade with support from recent project startups, including Thunder Horse Northwest and Thunder Horse South expansions and the Thunder Horse Water Injection project.