BP to spend $15 billion in Gulf of Mexico over next 10 years

Petroleum News Alaska

BP says it expects to spend at least $15 billion during the next 10 years in exploration, development and production activities in the Gulf of Mexico.

BP Chief Executive Officer Lord Browne of Madingley, in remarks made to The Houston Forum Aug. 2, said the company’s spending on its deepwater Gulf operations should reach at least $15 billion during the next decade as it develops its holdings in the region. The bulk of that will be spent drilling wells and developing fields that have already been discovered.

“The deep water is a central element of our growth strategy in the medium and long term,” Browne said. “BP is the largest single producer of oil and gas in the United States, and the deep water will sustain that position as well as making a crucial contribution to America’s energy needs.”

BP has more than 335,000 barrels of oil equivalent per day of production from its deepwater Gulf of Mexico holdings and reserves estimated at 3.5 billion barrels, the company said, with an equity stake in nine of the 10 largest fields discovered to date in the gulf .

Browne said the development of seven key new projects over the next several years would occupy a significant part of the business agenda.

BP has six major fields under development in the deepwater Gulf of Mexico: Thunder Horse, Atlantis, Holstein, Horn Mountain, Mad Dog and Na Kika, and holds 50 percent or greater interest in each of them. BP also operates all of the fields except Na Kika, which will also be BP operated from the onset of production.

The company also has under development the Mardi Gras Transportation System to transport oil and gas from the deepwater to market.

BP said it is the largest acreage holder in the deepwater Gulf of Mexico with more than 650 gross blocks in water depths greater than 1,500 feet. The company has approximately one-third of all deepwater Gulf of Mexico reserves discovered to date.