BP Dumps Canada's Oil Sands for More GOM Offshore Drilling

June 14, 2022--Researched by Industrial Info Resources (Sugar Land, Texas)--BP plc (NYSE:BP) (London, England) is cutting back on its Canadian business and turning more to the U.S. Gulf of Mexico. The oil and gas giant announced it is selling its 50% stake in northern Alberta's Sunrise oil sands project to Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta), which already holds the other 50%. Concurrently, BP is expanding its role in the Gulf through new drilling projects and additional processing capacity.

Industrial Info is tracking nearly $17 billion worth of offshore projects from BP, including more than $4.4 billion worth in North America. Later this year, BP expects to begin production at its Mad Dog 2 Offshore Floating Production Unit (FPU) and two-well drilling program in the Gulf of Mexico, which will be its fifth operating asset in the U.S. Gulf of Mexico, following Mad Dog, Atlantis, Na Kika and Thunder Horse.

By the end of the year, BP plans to double production at the Thunder Horse facility. Further out, BP plans to triple its current production from the Mad Dog development by 2025.