BP announces US oil discovery

BP had made an oil discovery at the Far South field in the Gulf of America (formerly the Gulf of Mexico), it said on Monday, as the energy major seeks to grow production under a strategy reset announced earlier in 2025.

The exploration well was drilled in Green Canyon block 584 about 193km off the coast of Louisiana. Both the initial well and a sidetrack encountered oil. The oil major said there is a potentially commercial volume of oil and gas.

It also said it planned to increase output in the gulf to 400,000 barrels of oil equivalent per day (boepd) by 2030. It expects global production to reach 2.3-million to 2.5-million boepd by the end of the decade, with potential to grow further up to the end of 2035.

London-listed shares of BP were up 4.72% in early trade. 

BP is the operator of Far South with a 57.5% interest, while partner Chevron holds 42.5%.

BP announced a strategy shift in February to turn around its underperformance, cutting planned investment in renewable energy to refocus on oil and gas.

About 1-million boepd are expected to be delivered from the US onshore and offshore regions by 2030.

BP plans more exploration in the ocean basin. It has approved the development of the Kaskida oilfield, which lies in a complex geological structure called the Paleogene, and plans to go ahead with a second Paleogene development, Tiber, later this year, CEO Murray Auchincloss told a conference last month.

Reuters