USA's largest energy investor begins production from another major upstream project, highlighting its commitment to key US offshore region
BP announced on Monday, the start-up of Na Kika Phase 3, a project supporting BP's strategy of growing high-margin production at four BP-operated hubs in the deepwater Gulf of Mexico.
The first Na Kika Phase 3 well began oil production on February 19, with a second well expected to start up in the second quarter.
NaKika, operated by BP is the first floating production storage facility in the Gulf of Mexico. It is also the deepest permanently moored facility, located in a water depth of 1,932 m (6,340 ft). Credit NOAA Ocean Explorer.
The project includes the drilling and completion of the two new wells, the addition of subsea infrastructure to tieback to the Na Kika platform and new equipment to allow increased production from an existing well at the site. It will utilize available production capacity at the Na Kika hub.
Na Kika Phase 3 is BP's third new major upstream project to begin production so far in 2014, following the earlier start-ups of the Chirag Oil project in Azerbaijan and the Mars B project in the Gulf of Mexico. BP expects to start-up a further three upstream projects through the rest of 2014.
"The Na Kika Phase 3 project demonstrates BP's ongoing commitment to the deepwater Gulf of Mexico and highlights our portfolio's ability to unlock value for investors while also delivering vital energy resources to the United States," said Richard Morrison, Regional President of BP's Gulf of Mexico business.
The Na Kika semi-submersible platform is located about 140 miles southeast of New Orleans in over 6,000 feet of water. BP is the operator of Na Kika and holds a 50 percent working interest, with Shell holding the remaining 50 percent stake. Production from Na Kika first began in 2003.
BP currently has a multi-billion investment program underway in the deepwater Gulf of Mexico. It plans to concentrate future activity and investment in the Gulf on growth opportunities around its four major operated production hubs – Thunder Horse, Na Kika, Atlantis and Mad Dog -- as well as on significant exploration and appraisal opportunities within its leading leasehold position in the US offshore region. BP also plans to continue investment in its non-operated production hubs, including Mars, Ursa and Great White.
BP is the largest investor in the Gulf of Mexico over the last ten years.
BP is the leading acreage holder in the deepwater Gulf, with ownership in more than 650 leases, which provide substantial opportunity for growth.
BP currently has ten drilling rigs operating in the Gulf, a company record. They are engaged in a range of activities including exploration, appraisal and development work.
BP directly employs more than 2,300 people in its Gulf of Mexico business and supports tens of thousands of additional jobs in the region.