BP makes giant oil discovery in the Gulf of Mexico.

BP has today (2 September) announced a giant oil discovery at its Tiber prospect in the deepwater Gulf of Mexico.

This latest finding is BP’s second discovery in the area following an earlier unearthing of a well in Kaskida. The oil giant is the largest producer of oil and gas in the Gulf of Mexico and produces the equivalent of around 400,000 barrels of oil per day.

The latest discovery is located approximately 250 miles from Houston in Keathley Canyon block 102, and is in 4,132 feet of water. According to the statement released by BP, the company drilled to its deepest ever depth in the Tiber well when it reached 35,055 feet. 

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

BP co-owns the Tiber well with Brazilian oil company Petrobras and US-based ConocoPhillips, which have a 20% and 18% stake respectively.

In August the price of oil reached its highest level of 2009, when the price of US crude rose to $74.15 a barrel and London Brent rose to $74.19. The price had not breached the $74 mark since October 2008.

BP has seen its share price rise by 17p on the London Stock Exchange today.