BP said Tuesday it has begun work on the deepwater Galapagos project in
the Gulf of Mexico, one of the U.K. oil giant's six high-margin projects
it expects to start in 2012.
The Galapagos development--which includes the three deepwater
fields Isabela, Santiago and Santa Cruz--will raise output from the Na
Kika offshore production hub.
The start-up process is expected by the end of June, with
three wells producing oil and gas. The project will be producing at
maximum capacity of 60,000 barrels of oil equivalent a day once an
additional well is brought on line next year. The Na Kika platform has a
capacity to handle 130,000 barrels of oil equivalent a day.
BP
said it plans to invest at least $4 billion a year on oil and gas
development in the Gulf of Mexico over the next ten years. The company,
which still faces billions of dollars in fines for its part in the worst
offshore oil spill in U.S. history after a BP-leased
drilling rig exploded in the Gulf in 2010, has said it will concentrate
on investing in more profitable oil production from basins in the U.S.,
Angola and Brazil.
"BP's
continuing investment in the Gulf of Mexico is yet another example of
our commitment to the U.S. economy and energy security," said Chief
Executive Bob Dudley. "This investment, along with our ongoing
commitment to the Gulf Coast region, demonstrates the importance of the
U.S. to BP's
long-term strategy."