BP finds 'giant' oil source in Gulf of Mexico

The London-based BP Plc yesterday announced the discovery of massive oil deposits in the Gulf of Mexico.

The well, located in Keathley Canyon block 102, approximately 400 km south-east of Houston, is in 1,259 metres of water.

The Tiber well was drilled to a total depth of approximately 10,685 metres making it one of the deepest wells ever drilled by the oil and gas industry.

The well found oil in multiple lower tertiary reservoirs, Europe's second-largest energy outfit said in a statement.

The company is yet to start appraisal to determine the size and commerciality of the discovery. Its biggest platform in those other fields, Thunder Horse, is producing as much as 300,000 barrels a day.

"Tiber represents BP's second material discovery in the emerging lower tertiary play in the US Gulf of Mexico, following our earlier Kaskida discovery," said Andy Inglis, chief executive, exploration and production, BP.