BP (NYSE:BP) confirmed on Monday that it will advance a $5 billion offshore drilling project in the U.S. Gulf of Mexico, named Tiber-Guadalupe, reflecting the company’s strategic pivot back to its core oil and gas operations.
The project is expected to begin production in 2030 and will feature a new floating platform capable of producing up to 80,000 barrels of crude per day.
After trailing competitors like Shell and Exxon Mobil in recent years amid rising debt, BP announced earlier this year that it would scale back investments in renewable energy and expand oil and gas production to revitalize its business and attract investors.
The U.S. Gulf is central to this plan, with BP aiming to achieve a production level of at least 400,000 barrels of oil equivalent per day by 2030, up from 341,000 boepd last year.
The platform will develop the Tiber and Guadalupe fields, located roughly 300 miles (480 km) southwest of New Orleans, which are estimated to contain around 350 million barrels of recoverable oil equivalent.
Tiber-Guadalupe will also be BP’s second Gulf project able to operate under ultra-high pressures of 20,000 pounds per square inch, marking a significant technological achievement.
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