BP makes giant oil discovery

London-based BP said it had made a “giant” oil discovery in the Gulf of Mexico, reaffirming the area’s importance to Western oil majors who are increasingly barred from investing in the world’s richest oil prospects.

BP said it had made the find at its Tiber Prospect in the deepwater Gulf of Mexico. The well was drilled in Keathley Canyon block 102. Further appraisal will be required to ascertain the volumes of oil present, BP said, but a spokesman said the find could be bigger than its Kaskida discovery which has more than three billion barrels of oil in place.

BP has a 62 per cent working interest in the block, while Brazilian state-controlled Petrobras owns 20 per cent and US oil major ConocoPhillips owns 18 per cent.

“These material discoveries together with our industry leading acreage position support the growth of our deepwater Gulf of Mexico business into the second half of the next decade,” said Andy Inglis, BP’s head of Exploration and Production.

Oil under $70

Oil prices recovered slightly yesterday but remained under $70 as investors awaited the latest weekly data on energy inventories in the United States, the world’s biggest crude consumer.

New York’s main contract, light sweet crude for October delivery, rose 51 cents to $68.55 a barrel. Brent crude for October advanced to $68.17.

 

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