BP starts major new Gulf of Mexico Project

Copyright BP PLC
Copyright BP PLC

Houston-- BP announced Tuesday it has begun the start-up process for a major oil and gas project in deep-waters of the Gulf of Mexico.

The project, Galapagos, ties three new fields to an already producing platform.

It represents BP's first major Gulf of Mexico project since the Deepwater Horizon rig explosion in April of 2010.

"The Galapagos development marks another significant step forward for BP in the Gulf," said a statement from James Dupree, Regional President of BP's U.S. Gulf of Mexico business.

The project includes three deepwater fields and increases the capability of an offshore production hub for the company.

The Na Kika host facility is located roughly 140 miles southeast of New Orleans in 6,500 feet of water.

The fields are being produced using sub sea equipment on the floor of the Gulf. 

While BP controls 56 percent of the overall project, Nobel, Red Willow Offshore and Houston Energy are co-owners.

BP said it expects to invest at least $4 billion annually  on oil and gas development in the Gulf over the next 10 years.

In the BP statement, company CEO Bob Dudley called Galapagos a "key operational milestone for 2012."