UK-headquartered energy giant BP has kicked off oil production from its fifth operated production platform in the U.S. Gulf of Mexico and the first new one since 2008 when Thunder Horse came online. This platform is the crown jewel in the project bestowing a new lease of life on the super-giant Mad Dog oil field.
Argos semi-submersible offshore platform in the U.S. Gulf of Mexico; Source: BP
BP disclosed on Thursday, 13 April 2023, that it had started oil production at its Argos semi-submersible offshore platform, delivering more energy at “a critical time” and strengthening its position as “a leading producer” in the deepwater U.S. Gulf of Mexico. With a gross production capacity of up to 140,000 barrels of oil per day, Argos will increase the firm’s gross operated production capacity in the Gulf of Mexico by an estimated 20 per cent.
Bernard Looney, BP’s chief executive, remarked: “The start-up of Argos is a fantastic achievement that helps deliver our integrated energy strategy – investing in today’s energy system and, at the same time, investing in the energy transition. As BP’s most digital facility worldwide, applying our latest technologies, Argos will strengthen our key position in the Gulf of Mexico for years to come.”
BP expects to safely and systematically ramp up production from Argos through 2023. This project reflects the UK player’s strategy of investing in high-quality oil and gas projects, “helping to deliver the energy the world needs today while also investing in energy for tomorrow.” According to the company, Argos is the centrepiece of its Mad Dog Phase 2 project, which extends the life of the super-giant oil field discovered in 1998.
The Mad Dog oil field started production with its first platform in 2005 while further appraisal drilling doubled the resource estimate of the field to more than 4 billion barrels of oil equivalent, spurring the need for another platform. As a result, the $9 billion Mad Dog Phase 2 project was sanctioned by BP in December 2016 and by its partners BHP, now Woodside, and Chevron in February 2017.
Initially, the first oil production was expected to start in late 2021 with the second platform moored six miles to the southwest of the existing Mad Dog platform, which is located in 4,500 feet of water about 190 miles south of New Orleans. The first Mad Dog platform has the capacity to produce up to 80,000 gross barrels of oil and 60 million gross cubic feet of natural gas per day.
