BP taps Singapore player for its new Gulf of Mexico-bound floating production unit

Singapore-headquartered provider of offshore, marine, and energy solutions Seatrium has been tasked with engineering, procurement, construction, and onshore commissioning (EPC) work for a newbuild floating production unit (FPU), destined for a deepwater project operated by BP Exploration & Production, a subsidiary of the UK-based energy heavyweight BP, in the U.S. Gulf of Mexico.

The EPC deal for the FPU Kaskida project in the U.S. Gulf of Mexico follows a letter of intent (LOI) Seatrium secured with BP in June 2024 for certain early engineering works, pending the finalization of a definitive contract for engineering, procurement, construction, and commissioning work for the FPU.

Located approximately 250 miles (around 402 kilometers) southwest of New Orleans in the Keathley Canyon area of the Gulf of Mexico, the Kaskida greenfield development project comprises a single topside module supported by a four-column semi-submersible hull.

BP took a final investment decision (FID) to develop Kaskida as its sixth-operated project in a prolific high-margin basin within the U.S. Gulf of Mexico, unlocking the potential to bring online 10 billion barrels of discovered resources in place.

The FPU Kaskida, which is supported by subsea production wells in a water depth of approximately 6,000 feet (about 1.8 kilometers), can produce 80,000 barrels of crude oil per day from six wells in the first phase of development.

William Gu, Seatrium’s Executive Vice President of Energy (International), commented: “We would like to thank bp for entrusting Seatrium with this milestone project and look forward to establishing a long-term relationship with bp. We are fully committed to successfully executing the project and delivering the Kaskida FPU safely and on time, marking our fourth successful FPU project for the region.”

The topsides for this Gulf of Mexico project will be integrated and lifted to the hull using Seatrium’s Goliath twin cranes with a combined lifting capacity of 30,000 tons. The Singapore player assembles topsides at ground level, which is said to support optimal readiness, thereby reducing safety risks during the assembly of topsides and enhancing overall project efficiency.

Kaskida, said to be in a prime location with a stable fiscal regime and market access, will be BP’s first development in the Gulf of Mexico to produce from reservoirs requiring well equipment with a pressure rating of up to 20,000 pounds per square inch (20K).

The firm underlines that advancements in 20K drilling technology coupled with updated seismic imaging enable it to safely develop the project and progress plans for other fields such as Tiber, which is anticipated to move to a final investment decision stage next year.

TechnipFMC, which will handle the integrated engineering, procurement, construction, and installation (iEPCI) work on the Kaskida development, is in charge of the design and manufacture of subsea production systems, including 20K standardized subsea trees and manifolds, alongside the design, manufacture, and installation of subsea umbilicals, risers, and flowlines. 

The advancements in 20K technology also recently enabled Chevron and TotalEnergies to bring online an oil and gas project in the Gulf of Mexico, which is seen as the industry’s first high-pressure deepwater development.

Following the discovery of the Kaskida field in 2006, BP has worked closely with the offshore industry to help develop the 20K rig technology necessary to complete high-pressure wells. The firm’s five operated platforms in the Gulf of Mexico portfolio encompass Argos, Atlantis, Mad Dog, Na Kika, and Thunder Horse.

After employing Audubon Engineering and Exmar Offshore to handle the engineering and design of the FPU’s topside and hull, respectively, the UK-headquartered energy giant also picked ABS to support the Kaskida deepwater project in the Gulf of Mexico by providing classification and engineering verification services for the new semi-submersible production unit.