News Summary
BP has commenced oil production at its Argos Southwest Extension project in the Gulf of America, significantly boosting its offshore energy output by 20,000 barrels of oil equivalent per day. Located 190 miles south of New Orleans, this platform marks BP’s first new platform in the Gulf in about 15 years. The Argos project, part of BP’s strategy to enhance production capacity, is expected to contribute up to 140,000 barrels of oil per day, with further expansions planned through 2027.
New Orleans, Louisiana – BP has officially initiated production at its Argos Southwest Extension project in the Gulf of America, marking a significant milestone in the company’s strategy to enhance its offshore energy output. The new project adds an estimated 20,000 barrels of oil equivalent per day (boe/d) in gross peak annualized average production.
Located approximately 190 miles south of New Orleans in waters that reach depths of 4,500 feet, the Argos platform commenced oil production in 2023. This development is particularly notable as it is BP’s first new platform in the Gulf in about 15 years. The total production capacity of Argos is projected to reach up to 140,000 barrels of oil per day.
The Argos Southwest Extension project was delivered seven months ahead of schedule and includes the installation of three new wells alongside a new drill center located approximately five miles southwest of the existing Argos platform. The time taken from the completion of the appraisal well to the first oil production was around 25 months.
This project is part of BP’s larger strategy to grow its offshore energy production and enhance long-term value for shareholders. The company has outlined plans for further expansion, with two additional projects slated for completion in the Gulf of America by 2027.
The upcoming Atlantis Drill Center 1 expansion is expected to increase production by around 15,000 boe/d and is scheduled to commence operations in 2026. Additionally, the Atlantis Major Facility expansion is expected to further bolster production in 2027. BP is also working on yet another new platform, the Kaskida, which aims to target 80,000 barrels per day and is anticipated to be operational by 2029. Ultimately, BP aims to increase its U.S. offshore production capacity to approximately 400,000 boe/d by the end of the decade.
The Argos project is co-owned by Woodside Energy, which holds a 23.9% working interest, and Union Oil Company of California, a Chevron affiliate, with a 15.6% working interest. BP remains the operator of the Argos platform with a 60.5% working interest.
This expansion aligns with the regulatory environment established during the Trump administration, which has implemented policies to enhance offshore oil and gas production in the Gulf. Recent regulatory changes are designed to facilitate offshore lease sales and minimize drilling restrictions, which have a direct impact on production capabilities.
According to projections, offshore production in federal waters of the Gulf is anticipated to average 1.8 million barrels a day by 2025, indicating a growing opportunity for energy companies operating in the region.
In summary, BP’s Argos Southwest Extension project not only contributes significantly to the company’s production capabilities but also signifies its commitment to investing in the Gulf of America. With additional expansion projects on the horizon, BP continues to navigate a landscape ripe with potential for increased offshore energy production.
Deeper Dive: News & Info About This Topic
- NOLA: Gulf of Mexico Oil Production
- Wikipedia: Oil Production
- Rigzone: BP Starts Up Argos Project
- Encyclopedia Britannica: Oil
- World Oil: BP Argos Expansion
- Google Search: Gulf of Mexico Oil Production
- BP: Argos Expansion Project
- Google News: BP Argos Project
- WorkBoat: BP Producing from Argos Expansion
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NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
