BP is exploring the sale of minority stakes in two of its most valuable Gulf of Mexico oil projects — Kaskida and Tiber — as the energy giant recalibrates its strategy to prioritize oil and gas, according to two sources familiar with the matter.
The potential divestments could involve selling up to 50% of each project, which are estimated to be worth billions of dollars, the sources said. Discussions are still in the early stages, and a formal sales process may launch later this year.
The move comes as BP retreats from an earlier pivot toward clean energy, opting instead to double down on traditional oil and gas assets. The company is now open to bringing in partners for Kaskida and Tiber, both of which are fully owned and rank among BP’s most promising ventures in the Gulf.
"If somebody wants to come and make a knockout bid on 25% of Kaskida, we're open to it, but it has to be for value," BP CEO Murray Auchincloss said during a recent capital markets day.
Industry insiders believe the most likely buyers would be other major energy companies already operating in the region. However, all sources noted that no deal is guaranteed. BP declined to comment.
Kaskida and Tiber sit within the Paleogene geological formation, an area where BP says it has discovered resources equivalent to 10 billion barrels of oil and gas. “Kaskida and Tiber are each worth in the billions of dollars, from a present value basis, to BP,” said Miles Sasser, a senior research analyst at Wood Mackenzie.
BP has a significant presence in the U.S. Gulf, operating five major projects. Kaskida, approved by the company in July, will become the sixth, with production expected to begin in 2029 and reach up to 80,000 barrels of crude oil per day. Tiber could follow, pending a final investment decision later this year.
Speaking at the CERAWeek energy conference earlier this month, Auchincloss reaffirmed that the U.S. and the Middle East will be central to BP’s revitalized oil and gas strategy.
The company is also pursuing a broader $20 billion divestment plan through 2027, aimed at reducing its debt from around $23 billion to between $14 billion and $18 billion.
(Reuters)