The project is expected to produce 80,000 barrels of crude oil per day.
Oil major BP on Monday decided to proceed with the $5 billion Tiber-Guadalupe project in the Gulf of America, in its latest step to boost fossil fuel production following a strategic retreat from renewables.
The wholly owned project will be BP’s seventh operated oil and gas production hub in the Gulf of Mexico, renamed to Gulf of America in the U.S., featuring a new floating production platform with the capacity to produce 80,000 barrels of crude oil per day.
Retail sentiment on Stocktwits about BP was in the ‘bullish’ territory at the time of writing. The British firm stated that the project comprises six wells in the Tiber field and a two-well tieback from the Guadalupe field, with production expected to commence in 2030.
“Along with its sister project Kaskida, Tiber-Guadalupe will play a critical role in BP’s focus on delivering secure and reliable energy the world needs today and tomorrow,” said Andy Krieger, BP’s senior vice president, Gulf of America and Canada.
The project, located 300 miles southwest of New Orleans, is estimated to have recoverable resources of around 350 million barrels of oil equivalent from the initial phase. Additional wells could be drilled in future phases after further evaluation, BP said.
The new project marks a significant shift in BP’s investment strategy under CEO Murray Auchincloss, toward a greater emphasis on fossil fuels. BP’s strategic reset marks years of underperformance compared to London-listed Shell and U.S. peers ExxonMobil and Chevron, following its failed bet on renewables based on the assumption that oil demand had peaked in 2020.
Last month, BP announced that it had discovered oil in the Bumerangue block, located over 400 kilometers off the coast of Rio de Janeiro, Brazil.
The project announcement comes amid a more favorable regulatory environment in the U.S., as the Trump administration has removed several hurdles for the industry.
The Tiber-Guadalupe and BP’s newly started Kaskida project will together help enable BP to boost its capacity to produce more than 400,000 barrels of oil equivalent per day from the U.S. offshore region by 2030. BP aims to raise its combined output in the country to more than 1 million boepd by 2030.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<