BP Taps Technip FMC for High-Pressure Work in U.S. Gulf

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Deep, high-pressure reserves in the Gulf of Mexico were once off limits to would-be drillers. BP has tapped its legacy partner, Technip FMC, to help with subsea work in these basins.

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20,000 PSI Once Off Limit

British energy company BP continues its legacy of tapping high-pressure reserves in the Gulf of Mexico by reaching a preliminary equipment deal with engineering firm Technip FMC.

Technip FMC on Wednesday said it signed a memorandum of understanding with the exploration and production arm of BP for cooperation on subsea systems designed to handle as much as 20,000 pounds per square inch (psi).

Kaskida is among the more promising prospects in BP's portfolio, based on data from Industrial Info Resources. The company made the initial discovery in 2006, but the prospect was considered uneconomical due to high pressure of around 20,000 psi. Previous offshore technology was limited to 15,000 psi, making many high-pressure fields off limits to would-be drillers.

By the Numbers

• 15,000 psi was the previous threshold for deepwater
• 15% of U.S. oil production comes from the Gulf of Mexico

BP eventually made its final investment decision (FID) on Kaskida in 2024, marking its sixth production hub in the U.S. territorial waters of the Gulf of Mexico at the time. Using a floating production platform, the company expects to be able to produce 80,000 barrels of oil per day (bpd) from the prospect.

Subscribers can click here for a full list of detailed reports for projects associated with Kaskida.

Neither company offered specifics on the fields in question.

"The MoU allows both parties to identify and work cooperatively on early opportunities and future technology development in support of greater schedule certainty and improved project outcomes," Technip FMC said in a statement.

Strong Partners in a Gulf with Diminishing Oil Prospects

Both sides have a long history of cooperation in the Gulf of Mexico.

Technip FMC has an engineering, procurement, construction and installation contract for the Tiber offshore oilfield development in the Gulf of Mexico. BP is expecting first oil production by 2029.

"The production plateau is expected to reach up to 80,00 bpd from initial wells and it will increase as the number of wells continue to be drilled," Industrial Info's project profile shows. "Water depth at the site is 5,900 feet."

The Tiber and Kaskida fields are among the oldest, deepest, highest-pressure locations for drilling in the Gulf, exploration of which has become technologically possible only in recent years due to advances in engineering. Technip FMC has also worked alongside BP at the Mad Dog Field in the Gulf.

Chevron, meanwhile, was among the early leaders in high-pressure fields with the start of its Anchor prospect in the Gulf of Mexico. The company deployed a semi-submersible floating production unit (FPU), designed with production capacity of 75,000 bpd of oil and 28 million cubic feet per day of natural gas.

Seven subsea wells are tied into the Anchor FPU, located about 140 miles off the Louisiana coast.

High-pressure developments come amid an expected decline in U.S. oil production from the Gulf of Mexico. The Energy Information Administration, part of the Energy Department, expects offshore production to average 2.03 million bpd in 2026 and fall to 1.9 million bpd by next year.

More than half of the Gulf oil production was shut in by Hurricane Isaias in early October, though installations largely avoided any lasting damage. Readers can access a deep-dive into the impacts here.

The Gulf of Mexico accounts for about 15% of total U.S. oil production. Federal oil drilling leases for the Gulf, however, have been lackluster relative to previous years.

Key Takeaways

• Technip FMC is helping BP tap reserves that were once out of reach
• U.S. oil production from the Gulf of Mexico is on the decline

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).