BP makes deepwater GoM discovery

BP, with partner ConocoPhillips, has struck oil at the Gila prospect in deepwater US Gulf of Mexico. BP said the move was a sign of its returning momentum in the region. 

The high pressure Gila discovery was made by an exploration well on Keathley Canyon Block 93, about 300mi southwest of New Orleans, in about 4900ft water depth. 

Image: The well was drilled using the West Capricorn semisubmersible rig (left).

The well, which penetrated multiple Paleogene-aged reservoir sands, was drilled to a total depth of 29,221ft. Appraisal drilling, including completion of drilling through the Paleocene section, will be required to determine the size and potential commerciality of the discovery.

BP said this is its third discovery in recent years in the emerging Paleogene trend in the Gulf of Mexico. The two previous Paleogene high pressure discoveries were Kaskida, in 2006, and Tiber in 2009.

In order to develop Kaskida, Tiber, and now Gila, BP is developing high pressure technology, through its 20KTM project, launched in 2012. In a presentation in October, Mike Daly, BP’s global head of exploration, said: "To develop these reservoirs, we need to step beyond the existing 15,000 psi pressure capability routinely employed by the industry.

"Project 20KTM was launched to address the safe development of these resources. It is a BP led major technology project, designed to progress resources that require development at pressures of up to 20,000 psi at the mudline, and up to 350 degrees Fahrenheit. BP currently has up to four billion barrels of oil equivalent net resources around the world that would be unlocked by this technology."

Project 20KTM will develop an integrated system consisting of four main components to drill, complete, produce and intervene in fields. By mid-2014, BP plans to finalise the conceptual engineering for each system to enable front end engineering design to start. The project is on track to deliver all four systems before the end of the decade. 

Daly said today “Gila continues our successful drill out of the prolific Paleogene play system in the deepwater Gulf of Mexico. Subject to successful appraisal, Gila, Tiber and Kaskida together offer the potential for significant future oil developments in the Keathley Canyon area.”

BP owns a majority interest in the Gila discovery, which is about 25mi west of Tiber, also located in the Keathley Canyon area. The lease for Keathley Canyon Block 93 was acquired in the Western Gulf of Mexico Lease OCS Sale 187 in 2003.

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