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BP stumbles across a billion barrels of oil in its oilfields

The British company now expects that output from the region would reach 400,000 barrels of oil daily by the middle of the next decade.

BP’s continuing investment in new technology has paid off bigtime. It will produce a billion more barrels of oil per day from an already existing oilfield at the Gulf of Mexico. BP also stated that it had also discovered two new fields and would make substantial investments in a nearby deposit.

Over past decade BP has been the biggest producer in the Gulf of Mexico, and it is making major effort to hold on to the mantle. The British company now expects that output from the region would reach 400,000 barrels of oil daily by the middle of the next decade. Currently, it produced 300,000 barrels daily up from 200,000 a few years back. Tuesday the oil and natural gas giant announced it would make huge investments to develop the Phase III of its Atlantis oilfields near New Orleans. Eight new wells are being bored in Atlantis which will increase production by 38,000 barrels per day at Atlantis. BP recently discovered another 400 million barrels of oil at Atlantis.

There has been a massive discovery near the coast of Louisiana at the Thunder Horse field. The development has been due to its investment in seismic technology. The use of the brand new method of data processing has meant that BP was able to crunch data in weeks instead of taking months. Its faith in new technology has paid off handsomely feel experts. The Na Kika platform is also looking very promising.

This tranche of positive news has been well accepted by investors. The investment bank Goldman Sachs has recommended a “buy” rating on BP stock and Deutsche bank has followed suit. There is a broad feeling that BP will outperform its guidance just as it has in the past two quarters. This is good news for a company which was mired in the Deepwater Horizon disaster eight years back.

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