BP brings online ‘some of the most efficient barrels in the world’

Oil and gas giant BP has announced the start-up of the Herschel Expansion project in the U.S. Gulf of Mexico, the first of four major projects scheduled to be delivered globally in 2022. The project is in line with BP’s strategy to focus on fast-payback and high-return opportunities.

The Herschel Expansion field is located in the Mississippi Canyon block 520, southeast of the BP-operated Na Kika platform in approximately 6,700 feet of water.

As explained by BP on Tuesday, the project is part of its strategy to invest in focused and resilient hydrocarbons.

Phase 1 of the Herschel Expansion project comprises the development of a new subsea production system and the first of up to three wells tied to the Na Kika platform. At its peak, this first well is expected to increase platform annual gross production by an estimated 10,600 barrels of oil equivalent a day (boe/d).

The BP-operated well, drilled to a depth of approximately 19,000 feet, is located southeast of the Na Kika platform, approximately 140 miles off the coast of New Orleans. The project provides infrastructure for future well tie-in opportunities. BP and Shell each hold a 50 per cent working interest in the Herschel development.

Starlee Sykes, BP senior vice president Gulf of Mexico and Canada, stated: “BP continues to grow its position in the Gulf of Mexico by bringing online high-quality projects. Like other recent start-ups in the Gulf of Mexico, with Herschel, we are tying into existing infrastructure to produce some of the most efficient barrels in the world. Focusing our hydrocarbons business on the highest quality resources such as these sits at the heart of BP’s strategy. Doing so safely, ahead of schedule and under budget is testament to the calibre of the team.”

Ewan Drummond, BP senior vice president, projects, production and operations said the project is a great example of the type of fast-payback, high-return tie-back opportunities BP continues to deliver while focusing and high-grading its hydrocarbons portfolio.

BP anticipates growth in its production in the US Gulf of Mexico to about 400,000 boe/d net by the mid-2020s.