SLB Supports High-Pressure Field Development for BP

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--BP plc (NYSE:BP) (London, England) recently awarded a contract to a joint venture led by SLB (NYSE:SLB) (Houston, Texas) to help with high-pressure subsea infrastructure at the Kaskida prospect in the Gulf of Mexico, which was sanctioned only in July.

Formerly Schlumberger, SLB said BP gave its OneSubsea joint venture a contract to develop a subsea boosting system for Kaskida. No value for the contract was provided. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project and Plant databases can learn more from a detailed project report.

"The project scope includes a supplier-led, high-pressure subsea pump solution complete with an integrated power and controls umbilical, as well as associated topside equipment," the company said.

Kaskida is among the more promising prospects in BP's portfolio. The company made the initial discovery in 2006, but it was considered uneconomical due to high pressure, some 20,000 pounds-per-square-inch (psi). Previous offshore technology was limited to 15,000 psi, making many high-pressure fields off limits, but BP in July announced it had developed new high-pressure technology for Kaskida.

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

"Our subsea boosting system will accelerate and maximize the immense potential for this development," said Mads Hjelmeland, the head of the OneSubsea joint venture.

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

With SLB's support, this will be BP's first-ever, high-pressure prospect in the Gulf of Mexico.

"By employing an industry-led design solution, Kaskida will be simpler to construct and simpler to operate, enhancing safety and delivering greater value for BP," said Andy Krieger, a regional senior vice president, after announcing the FID.

BP said that technology will play a "pivotal" role in field development, given the unique pressure characteristics. And the company is not alone. Chevron Corporation (NYSE:CVX) (San Ramon, California) in August announced new technology for 20,000 psi was used to achieve first oil at its Anchor field in the Gulf of Mexico, with approximately 75,000 BBL/d coming from the floating production unit.

The first oil from Kaskida is expected by 2029. BP said new drilling technology for high-pressure basins, along with new seismic imaging, could open the door to developing its Tiber field, which could get FID next year. Discovered in 2009, Tiber could hold as much as 6 billion barrels of oil in place.

The 1.77 million BBL/d expected from the U.S. territorial waters of the Gulf of Mexico this year represents about 13% of total U.S. crude oil production. The government expects the average to increase to 1.82 BBL/d on average in 2025.

BP took a hit during the third quarter on weak refining margins, with its $2.3 billion in profits marking a 30% dip from second-quarter levels. SLB reported net income for the three months ending September 30 of $9.2 billion, unchanged from the second quarter but 10% better than year-ago levels.

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) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).