Field/project development

BP Awards Kaskida LOI to Seatrium

The deepwater Gulf of Mexico project in the Paleogene will require a 20K-psi production semisubmersible.

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Source: BP Investor Update, 2023

BP has awarded Seatrium a letter of intent (LOI) for a 20K-psi production semisubmersible for the deepwater Gulf of Mexico (GOM) Kaskida project.

The Kaskida field, which was discovered in 2006 in the Paleogene, requires 20,000-psi production equipment; at the time of the discovery, that equipment was not commercially available.

In May, BP Senior Vice President for the GOM and Canada Andy Krieger told an Offshore Technology Conference audience that the supermajor opted to wait until 20K production equipment was commercially available rather than develop the technology itself.

Under the LOI Seatrium announced 5 June, Seatrium will carry out early engineering work pending the finalization of a definitive contract for engineering, procurement, construction, and commissioning work for the Kaskida production semisubmersible.

Project plans call for subsea production wells in about 6,000-ft water depth to send oil back to the four-column semisubmersible hull.

BP has said it expects to bring the Kaskida greenfield development to final investment decision before year’s end.

During the supermajor’s conference call discussing 1Q 2024 results, CEO Murray Auchincloss said the period between 2020 and 2023 was “about creating an awful lot of options” in terms of projects. “We now have 32 final investment decisions to make across 2024 and 2025,” he said.

BP owns and operates Kaskida in Keathley Canyon Block 292 with 100% interest.