SBM Offshore bags FPU contract for BP’s US Gulf deepwater project

BP Exploration & Production, a subsidiary of the UK-based energy heavyweight BP, has signed a contract with the Netherlands-based SBM Offshore for the work related to a semi-submersible floating production unit (FPU) destined for the former’s deepwater project in the Gulf of America, formerly the Gulf of Mexico.

The deal enables SBM to carry out the wet tow and installation on the FPU headed to the Kaskida field. The 100% BP-owned greenfield Paleogene development is located approximately 250 miles southwest of New Orleans, in the deepwater US Gulf.

SBM Offshore’s Chief Business Officer, Olivier Icyk, noted: “SBM Offshore’s commitment to excellence and innovation in the offshore industry is highlighted by this project, paving the way for future growth for our installation activities. Our pioneering spirit and deepwater expertise have been key differentiators in securing this contract.”

The Dutch player believes the contract highlights its competence in deepwater moorings and installation, building on its experience in worldwide offshore installation activities spanning over five decades. The company claims to have installed over 150 floating systems worldwide, among which 45 FPSOs in deep water, in this period.

Late last year, TechnipFMC was hired to handle the integrated engineering, procurement, construction, and installation (iEPCI) portion of the work at Kaskida, while the EPC contract for the FPU was handed out to Seatrium. 

Located in the Keathley Canyon area, Kaskida is said to be BP’s sixth hub in the Gulf of America. Expecting to unlock the potential to bring online 10 billion barrels of discovered resources in place across the Kaskida and Tiber catchment areas, the energy major approved the project in July 2024.

This will be BP’s first development in the Gulf to produce from reservoirs requiring well equipment with a pressure rating of up to 20,000 pounds per square inch (20K).

The production from the FPU with the capacity to produce 80,000 barrels of crude oil per day is scheduled to start in 2029, encompassing six wells in the first phase. The Kaskida project’s discovered recoverable resources are estimated at around 275 million barrels of oil equivalent from the initial phase.