Energy giant BP has announced the final investment decision for the Kaskida project, marking the establishment of its sixth operational hub in the Gulf of Mexico.  

The new floating production platform is designed to produce up to 80,000 barrels per day of crude oil from six wells in its initial phase, with production expected to commence in 2029. 

Wholly owned by bp, the Kaskida field is estimated to hold approximately 275mboe recoverable resources from the first phase alone.  

Future phases could see additional wells drilled, pending further assessment. 

The company intends to utilise existing designs for platforms and subsea equipment to enhance cost efficiencies throughout the construction, commissioning and operational stages of the Kaskida project.  

This approach is expected to be replicated in subsequent projects. 

Kaskida's strategic location benefits from a stable fiscal environment and market access, bp said.  

Notably, it will be the first development in the region to use well equipment capable of handling pressures up to 20,000 pounds per square inch. 

Situated in the Keathley Canyon, approximately 250 miles south-west of New Orleans, Kaskida has the potential to catalyse the future development of a vast resource base, with an estimated ten billion barrels of discovered resources in place across the Kaskida and Tiber catchment areas. 

bp's other platforms in the Gulf of Mexico include Argos, Atlantis, Mad Dog, Na Kika and Thunder Horse.  

In 2023, the company's operations in the basin yielded around 300,000 barrels of oil equivalent per day. 

bp executive vice-president of production and operations Gordon Birrell said: “Developing Kaskida will unlock the potential of the Paleogene in the Gulf of Mexico for bp, building on our decades of experience in the region.  

“Technology has and will continue to play a pivotal role in propelling Kaskida from discovery to production. Together with the other resources we have in the Paleogene, we expect it to prove to be a world-class development. Today is a critical step in realising its potential.” 

Last month, Seatrium, a Singapore-based engineering solutions company, received a letter of intent from BP for preliminary engineering services on the Kaskida floating production platform project.