Output from one of the largest deepwater fields in the U.S. Gulf of Mexico (GoM) is set to grow now that BP (NYSE: BP) has brought its Thunder Horse expansion project online.

The project, which involved adding to the seafloor a subsea production system hooked to two 3,353–m (11,000-ft) flowlines, is expected to increase production at the field by an estimated 50,000 barrels of oil equivalent per day (Mboe/d), BP said in a Jan. 23 news release.

The expansion project was brought online Dec. 8, 2016, nearly a year ahead of schedule and about $150 million, or 15%, under budget. The feat demonstrates that deepwater oil and gas development can be cost-effective, said Richard Morrison, regional president of BP’s Gulf of Mexico business unit.

“It also shows the effectiveness of our strategy in the [GoM], which is all about increasing production from within our existing asset base and large portfolio of undeveloped resources,” Morrison said in a Jan. 23 news release about the project.

BP attributed its ability to complete the project early and below budget to its use of proven standardized equipment and technology, rather than building customized components.

The system’s first well pumped from what BP called “the highest amount of hydrocarbon-bearing sand seen to date” at the field. The well hit 152 m (500 ft) of net pay.

The new subsea drill center is about 3.2 kilometers (km) (2 miles) from the Thunder Horse Platform, and three more wells will be tied onto the new system, according to BP.

The project followed the May 2016 startup of a water injection project at Thunder Horse. This project aimed to increase pressure at the field in an effort to recover another 65 MMboe.

The startup also followed BP’s decision, announced in December 2016, to spend $9 billion for the Mad Dog Phase 2 project. Plans for Mad Dog include a new floating production platform moored about 9.7 km (6 miles) southwest of the existing platform, with production set to begin in late 2021.

“Thunder Horse South Expansion—along with our recent approval of the $9 billion Mad Dog Phase 2 Platform—demonstrates that the U.S. Gulf of Mexico remains a key part of our global portfolio today and for many years to come,” BP's CEO Bob Dudley said.

BP, with a 75% interest, is the operator of Thunder Horse Field, which began production in 2008. Partner ExxonMobil Corp. (NYSE: XOM) holds the rest.

The expansion project marked the first of several major startups BP anticipates this year as it tries to increase production and capacity. Dudley called the project “a major step toward our goal of adding 800,000 barrels of new production by 2020.” The figure also includes 500 Mboe/d of new capacity online by year-end 2017.

Other planned 2017 startups, in which BP is operator or partner, include the:

  • Juniper unmanned production platform and subsea system offshore Trinidad;
  • Clair Ridge development, located west of Shetland in the U.K. North Sea. The development includes two bridge-linked platforms and subsea pipelines;
  • Quad 204 project that features an FPSO vessel and extension of an existing subsea system;
  • Taurus and Libra development of nine subsea wells offshore Egypt;
  • 200-well Khazzan Field development onshore Oman; and
  • Two-well subsea tieback Persephone project offshore Australia.

“More than 90% of the 800 Mboe/d is related to projects that have passed through the final investment decision and are complete or well under construction,” BP said on its website. “The remainder of the 800 Mboe/d is in the design stage and expected to progress into construction by early 2018.”

Velda Addison can be reached at vaddison@hartenergy.com.

Offshore