Galapagos

Location

The Galapagos development is situated in the deepwater U.S. Gulf of Mexico, approximately 140 miles southeast of New Orleans, in water depths of about 6,500 feet.

Fields and Infrastructure

The project involves the development of three deepwater fields: Isabela, Santiago, and Santa Cruz. These fields are being produced using subsea equipment on the floor of the Gulf. A new production flowline loop has been added to carry the output to the nearby Na Kika host facility, a BP-operated platform.

Production and Capacity

The Na Kika facility, which has been modified to handle output from the three fields, has a production capacity of 130,000 barrels of oil equivalent per day. The full ramp-up of the project was expected around the end of June 2012.

Ownership and Operation

BP has a significant interest in the project, holding about 56% of the overall interest in the three-block area that includes the fields. Noble Energy, Inc., Red Willow Offshore, LLC, and Houston Energy, L.P. are co-owners. BP operates the Isabela field, while Noble Energy operates the Santiago and Santa Cruz fields.

Investment and Strategy

The Galapagos development is part of BP's strategy to focus investment and future growth around its strengths, including deepwater exploration and development. BP expects to invest at least $4 billion a year on oil and gas development in the Gulf of Mexico over the next 10 years following the project's initiation.

Operational Milestones

The start-up of the Galapagos development was one of BP’s key operational milestones for 2012, marking one of six high-margin projects the company expected to bring into production that year. The project's operational progress was anticipated to deliver increasing financial momentum for BP in the subsequent years.

Infrastructure and Modifications

The development required the installation of new subsea infrastructure, production risers, and topsides, as well as other modifications to the Na Kika facility to handle the output from the three fields.

Economic and Energy Security Impact

BP's investment in the Galapagos development is seen as a commitment to the U.S. economy and energy security. The project aligns with BP's long-term strategy and underscores the importance of the U.S. to BP's future growth.

In summary, the Galapagos oil project is a significant deepwater development in the U.S. Gulf of Mexico, highlighting BP's commitment to deepwater exploration and production, and contributing to the company's financial and operational growth.