U.K.-based supermajor oil company BP has announced a giant oil discovery at its Tiber prospect in the deepwater Gulf of Mexico which the company believes will show the way toward long-expected riches still lurking at the centre of the deep waterway.

“It’s bigger than Kaskida at three billion barrels plus of oil, not necessarily recoverable, but in place,” a BP source told Scandoil.com

“Both Tiber and Kaskida lead to a whole new area of discovery and a new kind of geology in the Gulf of Mexico, with great potential for future finds over the next 10 to 20 years,” he said.

Tiber lies 400 kilometres (250 miles) south of Houston in 1,259 metres (4,132 feet) of water, well within the range of modern semi-submersible rigs and drill ships. But the well bored down to 10.68 kilometres total depth (35,055 feet), making it one of the deepest ever drilled.

Oil was found in multiple rock of the prehistoric Lower Tertiary era, although appraisal wells will have to find Tiber’s size and comfirm commerciality. Tiber is operated by BP with a 62 percent working interest, but Petrobras (20 percent) and ConocoPhillips (18 percent) are co-owners.

BP is the largest producer of oil and gas in the GoM with net production of over 400,000 barrels of oil equivalent per day. The company is progressing nine Gulf of Mexico projects: Atlantis Phase 2, Tubular Bells, Kodiak, Freedom, Kaskida, Isabela, Santa Cruz, Mad Dog tiebacks and Great White.

Major BP developments in the deepwater Gulf of Mexico include: Pompano, 1994; Marlin, 2000; Horn Mountain, 2002; Na Kika, 2003; Holstein, 2004; Mad Dog, 2005, Atlantis, 2007 and Thunder Horse 2008.

Tags: BP America Inc.