BP to invest $15 billion in Gulf projects

BP has announced that it expects to spend at least $15 billion during the next ten years on exploration, development and production activities in the Gulf of Mexico.

BP Chief Executive Officer Lord Browne of Madingley said the company’s spending on its deepwater Gulf operations should reach at least $15 billion during the next decade as it develops its holdings in the region.

The bulk of the money will be spent drilling wells and developing fields that have already been discovered.

‘The deep water is a central element of our growth strategy in the medium and long term,’ said Lord Browne. ‘BP is the largest single producer of oil and gas in the United States, and the deep water will sustain that position as well as making a crucial contribution to America’s energy needs.’

BP is one of the largest operators in the deepwater Gulf, producing more than 335,000 barrels of oil equivalent per day. Oil reserves are estimated at 3.5 billion barrels.

The company has approximately one-third of all deepwater Gulf reserves discovered to date. Lord Browne said the development of seven key new projects over the next several years would occupy a significant part of BP’s business agenda.

BP currently has six major fields under development in the deepwater Gulf: Thunder Horse, Atlantis, Holstein, Horn Mountain, Mad Dog and Na Kika, and holds fifty percent or greater interest in each of them.

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