BP Commits Five Billion Pounds to Unlock High Pressure Oil in Gulf of Mexico Field

BP has announced the approval of a £5 billion project to develop the Tiber oil field in the Gulf of Mexico, a resource previously considered too hazardous to exploit due to its extreme pressures. Technological breakthroughs, fostered through industry collaboration since the field’s discovery in 2009, have enabled BP to manage pressures exceeding 20,000 pounds per square inch—nearly 600 times that found in an average car tyre.

The enormous scale of the Tiber field, with an estimated 350 million barrels to be tapped, marks a shift in BP’s strategy as the company pivots back to oil and gas after a foray into green energy proved disappointing to investors. Tiber, situated about 300 miles southwest of New Orleans, is the second ultra-high pressure field BP has put into development, following the approval of the Kaskida project last year.

BP will deploy advanced, industry-proven technology including enhanced drilling rigs, robust subsea equipment, and thicker metal casing to ensure safety. All solutions are to be independently verified and approved. The move follows Chevron’s success last year as the first operator to commence production at such high-pressure levels in its Anchor field amid growing interest in challenging deepwater reserves.

Following the Deepwater Horizon disaster in 2010, which cost BP over $67 billion and was deemed the worst environmental calamity in US history, such high stakes developments remain under intense scrutiny. The Tiber and Kaskida fields dwarf earlier projects in reservoir pressure, presenting both opportunity and challenge as BP seeks to reinforce its position in one of the world’s premier oil producing basins.

Currently operating five platforms in the Gulf, BP estimates its Paleogene area properties, including Tiber and Kaskida, sit atop 10 billion barrels of oil in place. Output in the Gulf reached about 341,000 barrels per day last year, with the company aiming to rise to 400,000 barrels per day by the end of the decade. The Tiber project is forecast to produce 80,000 barrels per day when combined with the nearby Guadalupe field.

As BP’s global production holds steady at around 2.4 million barrels per day, the firm has revised its stance on hydrocarbon output—choosing to maintain or increase production instead of making substantial cuts. BP’s investments point to a renewed ambition for its American assets, which could account for up to a million barrels per day by 2030. Management describes the Tiber-Guadalupe project as a renewed commitment to the Gulf and a crucial expansion of BP’s energy portfolio.