Fossil Energy – Gulf of Mexico
UK-based BP has picked energy technology provider TechnipFMC for work at its sixth-operated deepwater project in a prolific high-margin basin within the U.S. Gulf of Mexico.
Thanks to a contract with a value between $250 million and $500 million, TechnipFMC will handle an integrated engineering, procurement, construction, and installation (iEPCI) contract for BP’s greenfield Kaskida development in the Gulf of Mexico, lending the oil major a helping hand in unlocking the potential to bring online 10 billion barrels of discovered resources in place.
The deal covers the design and manufacture of subsea production systems, including 20,000 psi (20K) standardized subsea trees and manifolds. In addition, the scope includes the design, manufacture, and installation of subsea umbilicals, risers, and flowlines. This award follows an integrated front end engineering and design (iFEED) study that the UK firm carried out for BP.
The production from the FPU with the capacity to produce 80,000 barrels of crude oil per day is slated to start in 2029, encompassing six wells in the first phase. The Kaskida project’s discovered recoverable resources are estimated at around 275 million barrels of oil equivalent from the initial phase.
Located about 250 miles southwest off the coast of New Orleans, the 100% BP-owned deepwater project in the Keathley Canyon area is said to unleash the potential future development of 10 billion barrels of discovered resources in place across the Kaskida and Tiber catchment areas.
BP has confirmed that Kaskida will be its 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 deal with TechnipFMC comes days after Enbridge won a $700 million contract for crude oil and natural gas pipelines at the Kaskida project.
