BP announces Gulf oil discovery with Far South

BP announced on April 14 that it had made an oil discovery at the Far South prospect in the US Gulf of Mexico. The company operates Far South with a 57.5% interest, while Chevron holds the remaining 42.5% stake.

In its announcement, BP said it had drilled the exploration well in Green Canyon Block 584, around 120 miles (193 km) off the coast of Louisiana and roughly 4 miles (6.4 km) north of the Constellation field, in 4,092 feet (1,247 metres) of water. The well was drilled to a total depth of 23,830 feet (7,263 metres) and both the initial well and a subsequent sidetrack encountered oil in “high-quality” Miocene reservoirs, according to the announcement. Preliminary data supported a potentially commercial volume of hydrocarbons, BP said.

The only further details provided at this time. The supermajor noted, though, that it was in the process of ramping up its exploration programme, with around 40 wells planned over the next three years and 10-15 of those due to be drilled this year. The new discovery was presented as evidence of BP’s efforts to boost investment in exploration and strengthen its upstream portfolio, in line with the strategy reset the company announced in February 2025.

The strategy reset centres on reducing and reallocating capital expenditure, as well as cutting costs, in a bid to focus on cash flow and returns. This includes increasing oil and gas investment to around $10bn per year while reducing total capex to $13-15bn up to 2027 and growing production to 2.3-2.5mn barrels of oil equivalent per day in 2030.

The Gulf is seen as a key part of BP’s increased upstream focus. In the Far South announcement, BP’s senior vice president for the Gulf, Andy Krieger, described the region as “an area of incredible growth and opportunity” for the company and its Gulf business as “central” to BP’s strategy.