BP’s New Deepwater Gulf Oil Project Draws Environmental Suit (1)

April 20, 2026, 5:02 PM UTCUpdated: April 20, 2026, 7:48 PM UTC

Environmental groups on Monday challenged the Trump administration’s approval of BP PLC‘s $5 billion oil drilling project in the Gulf of Mexico, alleging the proposed oilfield threatens the region’s ecosystems and endangered species.

The Bureau of Ocean Energy Management’s environmental review for the Kaskida Project contains information that is “missing or significantly flawed” in violation of administrative law, according to the groups’ statement.

The petition to review the decision was filed in the US Court of Appeals for the Eleventh Circuit.

Groups including the Center for Biological Diversity, Sierra Club, and Healthy Gulf say the agency approved a plan with faulty estimates for a “worst-case oil spill” from the drilling project, which is set to be about 250 miles off the coast of Louisiana and produce 80,000 barrels of oil per day.

Kaskida’s location will draw from oil wells at greater depths than BP’s Deepwater Horizon project, which exploded in 2010 and led to the biggest oil spill in US history.

BP didn’t show it will have “the necessary containment capabilities in case the company needs to stop a blown-out well from spilling 4.5 million barrels of oil or more across the Gulf,” according to the groups.

A spokesperson from the Interior said in a statement that the department doesn’t comment on litigation, but said “our world-class regulatory framework ensures that American energy is produced responsibly and efficiently, leading the global industry on safety and environmental stewardship.”

The petition comes after the Interior Department in March convened the Endangered Species Committee, known as the “God Squad,” and exempted all oil and gas operations in the Gulf from Endangered Species Act requirements.

Environmental groups brought several lawsuits against the unprecedented move by the administration, despite Defense Secretary Pete Hegseth saying oil development is necessary for national security amid global oil supply risks from the war in Iran.

Earthjustice is representing the groups.

The Sierra Club has received funding from Bloomberg Philanthropies, the charitable organization founded by Michael Bloomberg. Bloomberg Law is operated by entities controlled by Michael Bloomberg.

The case is Ctr. for Biological Diversity v. U.S. Dep’t of the Interior, 11th Cir., 4/20/26.

To contact the reporter on this story: Taylor Mills in Washington at tmills@bloombergindustry.com

To contact the editors responsible for this story: Maya Earls at mearls@bloomberglaw.com; Zachary Sherwood at zsherwood@bloombergindustry.com

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.