BP announced the start-up of Na Kika Phase 3, a project supporting BP’s strategy of growing high-margin production at four BP-operated hubs in the ultra-deepwater Gulf of Mexico. The first Na Kika Phase 3 well began oil production on 19 February, with a second well expected to start up in the second quarter.
The project includes the drilling and completion of the two new wells, the addition of subsea infrastructure to tieback to the Na Kika platform and new equipment to allow increased production from an existing well at the site. It will utilize available production capacity at the Na Kika hub.
Na Kika Phase 3 is BP’s third new major upstream project to begin production so far in 2014, following the earlier start-ups of the Chirag Oil project in Azerbaijan and the Mars B project in the Gulf of Mexico. BP expects to start-up a further three upstream projects through the rest of 2014.
The Na Kika semi-submersible platform is located about 140 miles (225 km) southeast of New Orleans in more than 6,000 feet (1,828 meters) of water. BP is the operator of Na Kika and holds a 50% working interest, with Shell holding the remaining 50% stake. Production from Na Kika first began in 2003.
BP currently has a multi-billion investment program underway in the deepwater Gulf of Mexico. It plans to concentrate future activity and investment in the Gulf on growth opportunities around its four major operated production hubs—Thunder Horse, Na Kika, Atlantis and Mad Dog—as well as on significant exploration and appraisal opportunities within its leading leasehold position in the US offshore region. BP also plans to continue investment in its non-operated production hubs, including Mars, Ursa and Great White.
Over the past five years, BP has invested nearly $50 billion in the US—more than any other energy company, it says. BP is also the largest investor in the Gulf of Mexico over the last ten years, with ownership in more than 650 leases, which provide substantial opportunity for growth. BP currently has ten drilling rigs operating in the Gulf, a company record. They are engaged in a range of activities including exploration, appraisal and development work.