bp takes step to advance Kaskida deepwater oilfield development

BP Exploration & Production Inc. has signed a letter of intent (LOI) with Seatrium Ltd. for work on bp’s deepwater Kaskida project—a greenfield development about 250 miles southwest of New Orleans—in the Keathley Canyon area of the Gulf of Mexico.

The letter is for services to carry out certain early engineering works pending the finalization of a definitive contract for engineering, procurement, construction, and commissioning work (EPC) for bp’s Kaskida floating production unit (FPU) project. An EPC contract award is subject to mutually agreed terms, conditions, management approval, and the final investment decision by bp, which is expected this year.

Comprising a single topside module supported by a four-column semi-submersible hull, the Kaskida FPU is supported by subsea production wells in a water depth of about 6,000 ft. The Kaskida project is part of a significant resource position discovered in the Paleogene that the company expects will drive growth in the Gulf of Mexico with new hub developments. Between 2022 to 2025, bp plans to invest $7 billion in its Gulf of Mexico business overall.

Kaskida was discovered in 2006 (OGJ Online, Aug. 31, 2006). bp is 100% owner and operator.