Production begins at BP deep-water Gulf project Houston Chronicle Copyright 2012 Houston Chronicle. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Published 09:51 p.m., Tuesday, June 12, 2012 BP has started production at a key new oil operation under more than a mile of water in the Gulf of Mexico, where it expects production to peak at 60,000 barrels a day of oil equivalent, the company said Tuesday. Despite the 2010 spill, for which the company is still engaged in restoration efforts and settlement negotiations, BP has continued to bank on major hydrocarbon developments in the Gulf. James Dupree, regional president of BP's U.S.