BP’s expansion of the Thunder Horse field in the Gulf of Mexico has started ahead of time and under budget.

The development of the new subsea production system will boost the site’s production capacity by an additional 50,000 barrels of oil each day.

The project has begun 11 months early and is expected to cost $150 million (£119.3m) less than expected as a result of using standardised equipment and technology rather than forking out and having to wait for customized components.

The expansion marks a step towards BP’s goal of adding 800,000 barrels of new oil production by 2020.

Developed with partner ExxonMobil, the Thunder Horse platform has the capacity to handle 250,000 barrels of oil and 200 million cubic feet of natural gas.

Richard Morrison, Regional President of BP Gulf of Mexico, said: “The Thunder Horse South Expansion project, brought online ahead of schedule and under budget, proves that deepwater can be done in a cost-effective way, while keeping a relentless focus on safety”

BP recently gave the go-ahead for the second phase of the Mad Dog deepwater project in the Gulf of Mexico.

The firm predicts renewables will be the fastest growing energy source in the next two decades.