UK's BP has entered into an agreement with TechnipFMC for the supply of 20,000 psi (20K) subsea tree systems for its projects in the Gulf of America's Paleogene, said to be an oil-rich geological area.
TechnipFMC signed a memorandum of understanding (MoU) with BP Exploration & Production Inc. which sets out a framework for the parties to cooperate in connection with the supply of 20K subsea tree systems for BP’s Paleogene projects in the Gulf of America (U.S. Gulf of Mexico).
According to TechnipFMC, the MoU allows both parties to identify and work cooperatively on early opportunities and future technology development in support of greater schedule certainty and improved project outcomes.
Doug Pferdehirt, Chair and CEO at TechnipFMC, said: “The MoU reflects our commitment to advancing the deployment of standardized 20K solutions. By combining proven technologies with repeatable and systematic project delivery, TechnipFMC can help improve predictability and performance across future developments.”
BP expects to invest around $10 billion to deliver its Gulf of America Paleogene projects. The final investment decisions (FIDs) were announced for the Kaskida project in July 2024 and the Tiber-Guadalupe project, which will become the Tiber platform, in September 2025, which shall together begin unlocking around 10 billion barrels of discovered resources in the Paleogene.
Kaskida is about 250 miles southwest of New Orleans and is expected to have a production capacity of 80,000 barrels of oil per day, with an anticipated start-up in 2029.
The Tiber platform will use more than 85% of Kaskida’s design and is expected to start production in 2030, adding an additional 80,000 barrels of oil per day production capacity. The plan includes drilling an appraisal well in 2026 that could underpin future phases of Kaskida.