Page 9 - NorthAmOil Week 49 2021

NorthAmOil PROJECTS & COMPANIES NorthAmOil

The Argos platform
arrived in Texas in April,
having sailed from
the Samsung Heavy
Industries shipyard in
South Korea.

BP’s Argos platform arrives in Gulf of Mexico

GULF OF MEXICO BP’S Argos platform, which will be used processed seawater into the reservoir.
for the Mad Dog 2 project, has arrived at its Oil and gas produced at Mad Dog 2 will be
final location in the US Gulf of Mexico. The exported via existing pipeline infrastructure.
60,000-ton (54,431-tonne) semi-submers- The project cost an estimated $9bn to develop.
ible floating production unit (FPU) will be BP sanctioned Mad Dog 2 in 2016, near the low
BP’s fifth operated platform in the Gulf and point of the oil price downturn that began in
the first new platform since Thunder Horse 2014, having simplified the project’s design and
entered service in 2008. cut its overall cost by about 60%.
The tow operation of the platform from The company is not the only one to simplify The company
Ingleside, Texas to its location about 6 miles (10 its semi-submersibles amid a series of oil price
km) from the original Mad Dog spar, around 190 downturns. Seven deepwater projects have been is not the only
miles (306 km) south of New Orleans, began in sanctioned in the Gulf since 2014, all involving
September. The platform arrived in Texas in semi-submersible platforms. The operators of one to simplify
April, having sailed from the Samsung Heavy these platforms have touted the cost-cutting
Industries shipyard in South Korea earlier in the efforts that were made in order to approve these its semi-
year. At Ingleside, it had to undergo final prepa- projects in the face of a lower oil price environ- submersibles
rations and regulatory inspections at the Kiewit ment. Standardisation of platform designs was
Offshore Services fabrication yard before it could one popular method of simplifying such projects amid a series
be sent offshore. and lowering their costs.
Construction on the platform first began in Now, the platform operators stand to benefit of oil price
2018. BP had initially hoped to start production from improved oil prices too, though their pro-
from the Argos in late 2021, but is now targeting jects were designed to generate returns even in a downturns.
the second quarter of 2022 for first oil, following lower price environment.
a slight delay. As the energy transition accelerates, the Gulf
The Mad Dog 2 project is located in water also stands to benefit from having a lower car-
depths of around 4,500 feet (1,372 metres) and bon intensity profile than many other oil- and
the Argos is expected to produce up to 140,000 gas-producing regions. On top of this, operators
barrels of oil equivalent per day (boepd) through are seeking to further shrink the region’s carbon
a subsea production system from 14 wells. BP footprint, including through the electrification
is planning to boost recovery from the project of their operations, as well as by reducing the size
by injecting 140,000 barrels per day (bpd) of and part count of offshore infrastructure.™

Week 49 09•December•2021 www. NEWSBASE .com P9