BP kicks off US Gulf extension project early, reinforcing oil & gas focus

August 4, 2025, by Dragana Nikše

The U.K.-headquartered energy giant BP has started up the subsea tieback project bringing more oil to its platform in the U.S. Gulf of America.

According to BP, the Argos Southwest Extension project ties three subsea wells back to the Argos platform and includes a new drill center roughly 5 miles southwest of the platform. Connecting new wells to existing offshore production facilities through pipelines, the project is envisaged to extend the footprint of the Mad Dog field.

This is hoped to boost the production at the Argos platform by an additional 20,000 barrels of oil equivalent per day (boe/d). The platform started producing in 2023 as part of the Mad Dog Phase 2 project.

“The Argos expansion underpins our commitment to investing in America, growing our US offshore energy production safely and efficiently,” noted Andy Krieger, BP’s Senior Vice President for the Gulf of America and Canada. “This project also kicks off a period of significant growth for bp in the Gulf of America, which will continue to play a critical role in delivering secure and reliable energy the world needs today and tomorrow.”

Operating in 4,500 feet, or around 1,371 meters of water, about 190 miles, or 305 kilometers, south of New Orleans, Argos has a gross production capacity of up to 140,000 barrels of oil per day. BP is the project operator with a 60.5% working interest, while its partners are Woodside Energy (23.9%) and Union Oil Company of California, an affiliate of Chevron (15.6%).

BP says the Argos Southwest Extension project was delivered seven months ahead of schedule, setting a new record for the company as startup was reached in approximately 25 months from the completion of the appraisal well in May 2023.

“Argos’ expansion project demonstrates how bp can swiftly bring new barrels to market safely and efficiently,” said Gordon Birrell, BP’s Executive Vice President of Production and Operations. “Our ability to move from resource discovery to first oil at record pace underscores our relentless pursuit to grow shareholder value.”

The extension project is the UK giant’s fifth major project start-up in 2025, and a first in a series of new projects planned in the Gulf of America until the end of the decade. Delivering on its reset strategy to grow its global oil and natural gas business, the projects are expected to boost the company’s capacity to produce around 400,000 barrels of oil equivalent per day from the U.S. offshore region.

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Business Developments & Projects

Following the Argos Southwest Extension, BP plans to deliver two additional expansion projects in the Gulf of America by 2027. The first one is the Atlantis Drill Center 1 Expansion, adding around 15,000 boe/d of gross peak production, expected to start up in 2026.

The second is the Atlantis Major Facility Expansion, which is envisaged to further increase production from the Atlantis field using existing infrastructure. Start-up is targeted for 2027.

In parallel with expansion efforts, BP is investing in Kaskida, its sixth platform in the Gulf of America that the company says represents the first step toward unlocking 10 billion barrels of discovered resources in an oil-rich geological area about 250 miles southwest of New Orleans.

Kaskida, which will have a production capacity of 80,000 barrels per day, is expected to start up in 2029. SBM Offshore recently won a contract for the work related to a semi-submersible floating production unit (FPU) destined for the project.

The company is also working toward reaching a final investment decision (FID) on its Tiber-Guadalupe project in 2025.

It has been a busy day for the oil and gas giant. Earlier today, it announced having made an oil and gas discovery at its prospect in the Bumerangue block in Brazil’s Santos Basin.