BP plc (BP) has awarded contracts to Houston-based Audubon Engineering Company and Exmar Offshore for the engineering and design of the topside and hull, respectively, of a floating production unit (FPU) for its newly sanctioned Kaskida development in the U.S. Gulf of Mexico.

This marks BP’s sixth-operated deepwater project in the region, situated in a prolific high-margin basin.

Hull and Topside Design Partnerships

Exmar Offshore will design and engineer the FPU hull, marking the fifth time that its patented OPTI hull design will be used. Carl-Antoine Saverys, CEO of Exmar, expressed the company’s enthusiasm for being selected, emphasizing the significance of this project for Exmar in the Gulf of Mexico.

Audubon, chosen for the FPU topside engineering work, will leverage its extensive experience from previous offshore projects, including Delta House and King’s Quay. Terry Mienie, executive vice president of Offshore at Audubon, highlighted the firm’s commitment to designing the topside for the Kaskida project with a focus on safety and efficiency.

Both companies have already begun their engineering work for the Kaskida FPU. Singapore’s Seatrium has also been involved in the early engineering efforts for the project.

Significance of the Kaskida Project

The Kaskida FPU is expected to produce 80,000 barrels of crude oil per day from six wells in its first phase, with production set to begin in 2029. The project is estimated to contain 275 million barrels of oil equivalent in recoverable resources. Notably, Kaskida will be BP’s first Gulf of Mexico project to utilize high-pressure 20,000 psi technology, setting a precedent for future deepwater developments.

This project is recognized as the industry’s first high-pressure deepwater development. It is poised to be one of the largest of its kind in U.S. energy history, with reservoir depths reaching 34,000 feet below sea level.

Zacks Rank & Key Picks

BP currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, MPLX LP MPLX and Northern Oil and Gas, Inc. NOG. While SM Energy currently sports a Zacks Rank #1 (Strong Buy), MPLX and Northern Oil and Gas carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.