Deepwater

A major oil and natural gas project expansion in the deepwater Gulf of Mexico (GOM) has ramped up four months ahead of schedule and 15% under budget, BP plc said Thursday.

Murphy Oil Corp. has formed a pact with a unit of Brazil’s Petróleo Brasileiro SA, aka Petrobras, to build a substantial outpost in the U.S. Gulf of Mexico (GOM).

Mexico must unlock its deepwater and unconventional hydrocarbon resources to reverse a decade-and-a-half trend of declining output, according to hydrocarbons undersecretary Aldo Flores.

Potential operators bid on less than 1% of the offshore blocks offered for auction in the federal Gulf of Mexico (GOM) Lease Sale 251 completed on Wednesday, but while muted, total high bids eclipsed offers in the March sale.

Up to 200 oil and gas projects worldwide could be approved by year’s end, lifted by a resurgence in offshore activity and better execution, analyst teams said this week.

Houston-based Talos Energy Inc. said its Mount Providence well in the Gulf of Mexico deepwater has begun producing about two months ahead of schedule, with current gross production of 3,850 boe/d — near the top of guidance.

Petroleos Mexicanos (Pemex) plans to drill a test well later this year for the offshore Zama reservoir, a private sector-led discovery that may overlap with a neighboring block controlled by the state oil company.

In a world were unconventional production has become the market mover, natural gas production is making strides in the offshore, growing by almost 30% in the past decade to more than 1,000 bcm/year (35,314 Bcf), according to the International Energy Agency (IEA).

Landmark offshore drilling safety rules put in place following the tragic Macondo well blowout in 2010 may be rolled back by the Trump administration.