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Released June 14, 2022 | SUGAR LAND
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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.
The deal benefits both companies: BP wants to exit the carbon-heavy oil sands market to pursue lower-carbon projects in the Gulf, while Cenovus wants to strengthen its role in Canada's oil sands developments.
Cenovus already operates the sprawling Sunrise development, which produces 50,000 barrels per day (BBL/d). Cenovus hopes to increase its overall capacity to 60,000 BBL/d. Industrial Info is tracking $4.65 billion worth of projects at Sunrise, including proposals for new production plants and field expansions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a full list of detailed project reports.
Click on the image at right for a map of the Sunrise development in northern Alberta, near the border with Saskatchewan.
Later this year, BP expects to begin production at its 140,000-BBL/d Mad Dog 2 Offshore Floating Production Unit (FPU) and two-well drilling program in the Gulf of Mexico. Located in the Green Canyon field, the FPU's 60,000-ton platform "has a deck the length and width of an American football field," said Starlee Sykes, BP's senior vice president of Gulf of Mexico and Canada, during May's Offshore Technology Conference in Houston. Subscribers can read detailed project reports on the Mad Dog 2 FPU and drilling program.
Mad Dog 2 will be BP's fifth operating asset in the U.S. Gulf of Mexico, following Mad Dog, Atlantis, Na Kika and Thunder Horse, and the "first new platform for BP since Thunder Horse began production 14 years ago in 2008," Sykes said. By the end of the year, BP plans to double production at the Thunder Horse facility to 200,000 BBL/d, following the completion and startup in 2021 of Thunder Horse South's Phase II expansion. Subscribers can read more in Industrial Info's plant profile for Thunder Horse, and in detailed project reports for the Phase II subsea infrastructure and drilling.
BP also is drilling two new wells for its Atlantis platform, also in the Green Canyon field, which are expected to wrap up this summer. Subscribers can learn more from Industrial Info's project report.
Further out, BP plans to triple its current production from the Mad Dog development, which comprises Mad Dog and Mad Dog 2, by 2025. The growth would involve drilling two to four additional water injection wells at BP's South West location within the Mad Dog field, and another two to four at its North West location. Subscribers can read detailed reports on the proposed South West and North West projects.
According to Sykes, these projects would increase BP's overall oil and gas production to roughly 400,000 barrels of oil equivalent per day by the middle of the decade. Subscribers can click here for a full list of BP's active offshore projects across North America.
As part of BP's agreement to sell its Sunrise assets to Cenovus, BP agreed to buy Cenovus's 35% stake in the undeveloped Bay du Nord project offshore Newfoundland and Labrador. The project, which is majority-owned by Equinor ASA (NYSE:EQNR) (Stavanger, Norway), involves drilling 40 wells to support a 200,000-BBL/d FPU. Still in its early development stages, the Bay du Nord project is unlikely to begin construction until 2024. Subscribers can learn more from Industrial Info's project report.
None of this is to say Cenovus has lost interest in offshore drilling. Quite the opposite: Earlier this month, Cenovus announced it will return to developing its West White Rose oil project offshore Newfoundland and Labrador, an expansion of Canada's White Rose oilfield that was put on hold amid the COVID-19 pandemic. For more information, see June 1, 2022, article - Cenovus Revives White Rose Offshore Project as Oil & Gas Demand Skyrockets.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
The deal benefits both companies: BP wants to exit the carbon-heavy oil sands market to pursue lower-carbon projects in the Gulf, while Cenovus wants to strengthen its role in Canada's oil sands developments.
Cenovus already operates the sprawling Sunrise development, which produces 50,000 barrels per day (BBL/d). Cenovus hopes to increase its overall capacity to 60,000 BBL/d. Industrial Info is tracking $4.65 billion worth of projects at Sunrise, including proposals for new production plants and field expansions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a full list of detailed project reports.
Click on the image at right for a map of the Sunrise development in northern Alberta, near the border with Saskatchewan.Later this year, BP expects to begin production at its 140,000-BBL/d Mad Dog 2 Offshore Floating Production Unit (FPU) and two-well drilling program in the Gulf of Mexico. Located in the Green Canyon field, the FPU's 60,000-ton platform "has a deck the length and width of an American football field," said Starlee Sykes, BP's senior vice president of Gulf of Mexico and Canada, during May's Offshore Technology Conference in Houston. Subscribers can read detailed project reports on the Mad Dog 2 FPU and drilling program.
Mad Dog 2 will be BP's fifth operating asset in the U.S. Gulf of Mexico, following Mad Dog, Atlantis, Na Kika and Thunder Horse, and the "first new platform for BP since Thunder Horse began production 14 years ago in 2008," Sykes said. By the end of the year, BP plans to double production at the Thunder Horse facility to 200,000 BBL/d, following the completion and startup in 2021 of Thunder Horse South's Phase II expansion. Subscribers can read more in Industrial Info's plant profile for Thunder Horse, and in detailed project reports for the Phase II subsea infrastructure and drilling.
BP also is drilling two new wells for its Atlantis platform, also in the Green Canyon field, which are expected to wrap up this summer. Subscribers can learn more from Industrial Info's project report.
Further out, BP plans to triple its current production from the Mad Dog development, which comprises Mad Dog and Mad Dog 2, by 2025. The growth would involve drilling two to four additional water injection wells at BP's South West location within the Mad Dog field, and another two to four at its North West location. Subscribers can read detailed reports on the proposed South West and North West projects.
According to Sykes, these projects would increase BP's overall oil and gas production to roughly 400,000 barrels of oil equivalent per day by the middle of the decade. Subscribers can click here for a full list of BP's active offshore projects across North America.
As part of BP's agreement to sell its Sunrise assets to Cenovus, BP agreed to buy Cenovus's 35% stake in the undeveloped Bay du Nord project offshore Newfoundland and Labrador. The project, which is majority-owned by Equinor ASA (NYSE:EQNR) (Stavanger, Norway), involves drilling 40 wells to support a 200,000-BBL/d FPU. Still in its early development stages, the Bay du Nord project is unlikely to begin construction until 2024. Subscribers can learn more from Industrial Info's project report.
None of this is to say Cenovus has lost interest in offshore drilling. Quite the opposite: Earlier this month, Cenovus announced it will return to developing its West White Rose oil project offshore Newfoundland and Labrador, an expansion of Canada's White Rose oilfield that was put on hold amid the COVID-19 pandemic. For more information, see June 1, 2022, article - Cenovus Revives White Rose Offshore Project as Oil & Gas Demand Skyrockets.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
