BP Enjoys Exploration Success - Again

BP (BP) has swiftly gained new, more positive, headlines following last week’s news regarding its indirect involvement in the Lockerbie, Libyan energy ‘relationship’.

The good news relates to a “giant” oil discovery in the Gulf of Mexico, in which BP is already the largest single producer. The additional resource in the Tiber Prospect involves Petrobras and ConocoPhillips (COP) with 20% and 18% interests respectively though it is BP with a 62% stake in the asset that is set to gain most.

The new well, benefiting from advances in exploration technology, was drilled to a depth of 35,000 feet making it one of the deepest wells ever drilled providing hopes the Gulf of Mexico may offer further, yet to be discovered, resources.

Though BP is naturally reluctant to shoot from the hip and confirm categorically the size of the find, insiders have indicated the asset maybe in excess of the 3 billion barrels previously found in nearby Kaskida well, also by BP.

“These material discoveries together with our industry leading acreage position support the continuing growth of our deepwater Gulf of Mexico business into the second half of the next decade,” BP’s head of Exploration and Production, Andy Inglis stated.

Strategically, for the neighbouring US, the discoveries assist the Obama administration in its efforts to reduce US reliance on foreign energy suppliers.

BP stock jumped modestly on the news.

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