BP unlocks a billion oil barrels in Gulf of Mexico with new technology

* BP to go ahead with Atlantis expansion

* Makes two new discoveries in prolific basin

* Aims to increase production in GoM to 400,000 boed

By Ron Bousso

LONDON, Jan 8 (Reuters) - BP said it has discoveredtwo new oilfields in the Gulf of Mexico and has identified anadditional billion barrels of oil at an existing field thanks tonew seismic technology.

The British company, which has only recently turned a cornerfollowing the deadly 2010 Deepwater Horizon spill, also onTuesday announced plans to expand production at its Atlantisoilfield in the Gulf of Mexico, consolidating its status as thelargest oil producer in that region.

The company has put a heavy emphasis on technology and dataprocessing capabilities in recent years in order to unlock newresources and cut costs.

The $1.3 billion Atlantis Phase 3 development will includedrilling eight wells and a new subsea production system thatwill boost BP's production by 38,000 barrels of oil equivalentper day (boed). It is scheduled to start production in 2020.

Together with the new discoveries, BP aims to grow its Gulfof Mexico production from over 300,000 boed at present to400,000 boed by the mid 2020s.

BP said that new seismic technology helped it identify anadditional 1 billion barrels of oil at its Thunder Horse fieldwithin weeks, whereas previously it would have taken a year toanalyse.

BP also announced oil discoveries in the Manuel and NearlyHeadless Nick prospect in the Gulf. The Manuel prospect, halfowned by Royal Dutch Shell, will be linked to the NaKika platform.

"BP's Gulf of Mexico business is key to our strategy ofgrowing production of advantaged high-margin oil," BP head ofupstream Bernard Looney said in a statement.

"And these fields are still young – only 12 percent of thehydrocarbons in place across our Gulf portfolio have beenproduced so far. We can see many opportunities for furtherdevelopment," he added.

BP said it is also considering the development of Atlantisphases 4 and 5 as well as expanding the Thunder Horse, Na Kikaand Mad Dog fields.

(Reporting by Ron Bousso; Editing by Susan Fenton)