BP Exploration & Production Inc. has agreed with TechnipFMC to supply 20,000 subsea tree systems rated at 20,000 psi (20K). These systems are designed for BP's projects in the Paleogene region of the Gulf of America, which is known as an oil-rich area.
Details of the Agreement and Its Purpose
The agreement, known as a Memorandum of Understanding (MoU), provides a framework for the collaboration of the parties in the supply of 20K subsea tree systems. The purpose of this agreement is to identify and work on early opportunities and technology development aimed at increasing confidence in scheduling and improving project outcomes.
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Doug Pferdehirt, President and CEO of TechnipFMC, stated: "This memorandum of understanding represents our commitment to advancing the deployment of standard 20K solutions. By combining proven technologies and systematic project delivery, TechnipFMC can help improve predictability and performance in future developments."
BP's Investment in Gulf of America Projects
BP expects to invest about $10 billion to realize its Paleogene projects in the Gulf of America. Final investment decisions (FIDs) for the Kaskida project are expected in July 2024 and for the Tiber-Guadalupe project, which will be converted into the Tiber platform, in September 2025. Together, these two projects will unlock approximately 10 billion barrels of discovered resources in the Paleogene region.
The Kaskida project is located about 250 miles southwest of New Orleans and is expected to have a production capacity of 80,000 barrels of oil per day. Additionally, the startup of this project is anticipated for 2029.
The Tiber platform will utilize over 85% of the Kaskida design and is expected to commence production in 2030, adding an additional production capacity of 80,000 barrels of oil per day. There are also plans to drill an appraisal well in 2026, which could support future phases of Kaskida.
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