Supermajor BP, London, on Monday announced it has started production from its Argos Southwest Extension project, the first in a planned series of developments in the U.S. Gulf of Mexico, now referred to by the U.S. government as the Gulf of America.
The project, which adds 20,000 barrels of oil equivalent per day (boe/d) of gross peak annualized average production, ties into the existing Argos platform. Argos, which began operations in 2023, is BP’s fifth operated production platform in the U.S. Gulf and has a gross production capacity of up to 140,000 barrels of oil per day.
“The Argos expansion underpins our commitment to investing in America, growing our U.S. offshore energy production safely and efficiently,” Andy Krieger, BP’s senior vice president for the Gulf of America and Canada, said in a statement. “This project also kicks off a period of significant growth for BP in the Gulf of America, which will continue to play a critical role in delivering secure and reliable energy the world needs today and tomorrow.”
The expansion includes three new wells and a drill center located about five miles southwest of the Argos platform. The subsea tieback connects the new wells to existing offshore facilities, expanding the footprint of the Mad Dog field, discovered in 1998.
BP said it completed the Argos Southwest Extension project approximately seven months ahead of schedule by implementing concurrent workstreams, optimizing project management, and starting procurement early. The project moved from appraisal well completion in May 2023 to first oil in about 25 months, setting a record for BP, the company added.
“Argos’ expansion project demonstrates how BP can swiftly bring new barrels to market safely and efficiently,” Gordon Birrell, BP’s executive vice president of production and operations, said in a statement. “Our ability to move from resource discovery to first oil at record pace underscores our relentless pursuit to grow shareholder value.”
The Argos Southwest Extension is one of 10 major projects BP plans to launch globally by 2027, according to the company. It is also the first of three major expansion and new-build efforts in the Gulf of America aimed at raising BP’s offshore production capacity in the region to around 400,000 boe/d by decade’s end, it added.
Next in line are two Atlantis field developments: the Atlantis Drill Center 1 Expansion, expected to add about 15,000 boe/d, is slated for startup in 2026; and the Atlantis Major Facility Expansion, which will utilize existing infrastructure to boost output, is expected to begin production in 2027.
In addition to expanding existing hubs, BP is investing in Kaskida, a new platform located roughly 250 miles southwest of New Orleans. Expected to come online in 2029, Kaskida will be BP’s sixth Gulf platform and is projected to produce 80,000 barrels per day. It marks BP’s initial step in developing 10 billion barrels of discovered resources in the Paleogene geological formation.
The company is also working toward a final investment decision on its Tiber-Guadalupe project in 2025.
BP is the operator of Argos with a 60.5% working interest. Project partners include Woodside Energy Group Ltd. (23.9%) and Union Oil Company of California, an affiliate of Chevron U.S.A. Inc. (15.6%).
