BP has formally launched a sale process for minority stakes in Kaskida and Tiber, its two largest Gulf of Mexico development projects, according to four people with knowledge of the matter. Each project is estimated to be worth billions of dollars to the company.
The move marks one of the first significant decisions under new CEO Meg O’Neill, who took the helm in April as BP’s first external hire in more than a century.
BP formally begins Gulf of Mexico stake sale process
BP has initiated a formal process to sell minority stakes in the Kaskida and Tiber deepwater projects. Four sources with direct knowledge confirmed the process is underway, all speaking on condition of anonymity to discuss private deliberations. BP declined to comment when contacted.
The exact size of the stakes being offered has not been disclosed. BP has been weighing this sale for more than a year—the formal launch signals the company is ready to move from consideration to execution. For new CEO Meg O’Neill, this is one of her first major strategic actions since taking the role in April, and it sets a clear early tone.
Why BP is selling: capital recycling and strategic refocus
Selling minority stakes in development-stage projects is standard practice in oil and gas. Companies use it to recover capital before production begins, with the incoming partner absorbing a share of development cost and risk while the seller retains operational control and a majority interest.
BP’s motivation runs deeper than routine capital management, though. The company reset its corporate strategy last year, pulling back from a renewable energy push that had drawn sustained investor criticism and failed to lift share performance. That pivot was a direct response to pressure — and it stuck.
The new direction places oil and gas at the center of BP’s business, with the U.S. identified as the primary engine of growth. BP aims to grow its U.S. upstream output to approximately 1 million barrels of oil equivalent per day by 2030. Proceeds from the Kaskida and Tiber stake sales could help fund that expansion.
What the Kaskida and Tiber projects represent for BP
These are not peripheral assets. Kaskida and Tiber are BP’s top-ranked prospects in the Gulf of Mexico — its most significant deepwater development opportunities in the region — and each is expected to reach a production capacity of 80,000 barrels of oil per day.
Together, the two fields represent a meaningful portion of BP’s planned U.S. production growth. Kaskida is targeted to begin production in 2029, with Tiber following a year later in 2030. Both timelines fall squarely within BP’s strategic planning window, and each project is estimated to be worth billions of dollars, which explains why minority stakes are expected to attract serious buyer interest.
Context: BP’s leadership change and broader production targets
Meg O’Neill’s appointment is itself notable. She is BP’s first externally hired CEO in more than a century, coming from Boulder, Colorado, and stepping into the role in April. The board’s decision to look outside the company for leadership reflected an unmistakable desire for change.
Her early moves will be closely watched. The Kaskida and Tiber sale process is the first significant test of her strategic direction—one that aligns with the oil-and-gas refocus her predecessor initiated while advancing it in a concrete, commercially meaningful way.
BP’s global production target for 2030 sits between 2.3 million and 2.5 million barrels of oil equivalent per day, with U.S. upstream output planned to account for just under half of that figure. Reaching 1 million barrels per day from U.S. operations alone is an ambitious goal, one that demands disciplined capital allocation across the entire portfolio.
The strategy is to recycle capital
BP has launched a formal process to sell minority stakes in Kaskida and Tiber, its two largest Gulf of Mexico development projects. Four sources confirmed the process is underway; BP declined to comment. The size of the stakes on offer has not been disclosed.
Both projects carry an expected production capacity of 80,000 barrels of oil per day, with start dates of 2029 and 2030, respectively. The sale fits BP’s broader strategy to recycle capital and concentrate investment in oil and gas, particularly in the U.S. Oil prices have also risen more than 40% year-to-date, influenced by supply disruptions linked to the U.S.-Israeli conflict with Iran—a backdrop that could support buyer interest in Gulf of Mexico assets.
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