BP Gets Disappointing Results For Gulf Of Mexico Deepwater Appraisal Well

BP, Chevron, and Talos Energy received disappointing results this week from its Puma West-2 appraisal well, Talos said.

The Puma West-2 appraisal well was drilled to a depth of 25,995 feet followed by a sidetrack, which was drilled geologically down-dip to a total depth of 27,650 feet.

While the appraisal wells did encounter hydrocarbons in multiple sands, additional hydrocarbons from a subsequent well or sidetrack are necessary before they consider moving forward with the project. The Puma West 2 wellbore was suspended temporarily with utility to allow for future potential sidetrack opportunities. Drilling data will now be reviewed and analyzed to determine the best path forward.

BP owns a 50% stake in the project and is operator, with Chevron and Talos each holding a 25% stake.

Spudded in October of last year, the well was highly anticipated and followed in the footsteps of the 2021 exploration discovery well on Green Canyon Block 821 just west of BP’s Mad Dog field.

BP has plans to increase its GoM production to 400,000 bpd by the middle of this decade.

The U.S. Gulf of Mexico is possibly one of the world’s most mature deepwater basins with significant room left to expand. It boasts some of the lowest emissions per barrel estimates in the world and contributes roughly 15% of all U.S. crude oil, a report from McKinsey & Company said late last year, with the potential to add up to another 2 million bpd by 2040. For oil companies that have pledged net zero emissions targets, the U.S. Gulf is an attractive play.

The Bureau of Ocean Management issued last week a notice for an oil and gas lease sale in the Gulf of Mexico that will take place this month. The BOEM is offering up 13,600 blocks across 73.3 million acres.

By Julianne Geiger for Oilprice.com

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