By Sheila Dang
BP (BP) did an oil discovery in the far South Veld in the American Gulf of Mexico, said the Oil Major Olie-Majoor, established in the United Kingdom on Monday.
The exploration pit was drilled in Green Canyon Block 584 about 120 miles off the coast of Louisiana. Both the initial well and a side play experienced oil, and preliminary data indicate a potentially commercial volume of oil and gas, the company said in a press release.
The discovery comes after BP announced a radical strategy shift in February to reverse its underperformance, reducing the planned investments in renewable energy to repeat themselves on oil and gas production.
The company said it is planning to grow production in the Gulf of Mexico to 400,000 vessels Oil equivalent per day (Covered) by 2030. The global production is expected to reach 2.3 million to 2.5 million by the end of the decade.
BP is the operator of the Far South with an interest rate of 57.5%, while partner Chevron has an interest of 42.5%.
BP is planting more exploration in the ocean basin. It enlightened the development of the Kaskida Olieveld, which lies in a complex geological structure called the Paleogenene, and intends to continue with a second Paleogenic development, Tiber, later this year, said Murray Auchincloss during a conference last month.
(Reporting by Sheila Dang in Houston; Edit by Leslie Adler)
