Shell PLC has taken a last funding determination to proceed with the third-phase growth of the Silvertip Frio reservoir on the US aspect of the Gulf of Mexico (GOM).
The part 3 mission entails two wells with a mixed capability of 6,000 barrels of oil equal a day (boed), in line with a press release on Shell’s U.S. web site. The wells shall be tied into present subsea infrastructure. The British operator expects to begin manufacturing 2026.
Section 3 has estimated confirmed and possible reserves of 17 million barrels of oil equal (MMboe), in line with Shell.
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Shell holds a 40 % stake in Silvertip Frio whereas Chevron Corp. owns the remaining 60 %.
The mission targets the Perdido spar within the Alaminos Canyon. Perdido is about 200 miles off the south of Galveston, Texas, in round 8,000 toes of water, in line with Shell.
“This funding at Perdido is one other instance of our deal with high-margin, lower-carbon depth barrels”, stated Wealthy Howe, deepwater govt vp at Shell.
“As the biggest operator within the US Gulf of Mexico, we prioritize alternatives close by our present property in these advantaged corridors, the place we’re well-positioned to develop shorter-cycle, high-value tieback alternatives”.
Shell added, “The funding in Section 3 Silvertip is predicted to generate an inner charge of return in extra of the hurdle charge for Shell’s Upstream enterprise”.
In one other mission within the Gulf of Mexico, Shell on October 3 introduced a last funding determination to construct a pipeline that can improve entry to Inexperienced Canyon Block 19 (GC19) from the Fourchon Junction facility on the Louisiana Gulf Coast.
“The Rome Pipeline will run adjoining to present hall pipelines and can lengthen roughly 100 miles in size”, Shell stated in a press launch then. “It is going to originate from Shell’s GC-19 pipeline hub platform which serves as a vacation spot for a number of present deep-water fields within the GoM because of its connections to most main crude oil markets in Texas and Louisiana”.
Concurrently Shell agreed to let BP PLC use the Rome Pipeline to export 100% of the oil manufacturing from BP’s not too long ago accredited Kaskida mission within the Keathley Canyon.
“Pending relevant allowing and regulatory company approvals, the Rome Pipeline is projected to start operation in 2028”, Shell stated.
Elsewhere within the Gulf of Mexico Shell earlier this yr put into manufacturing a subsea tie-back to the Appomattox manufacturing hub with an estimated peak manufacturing of 16,000 boed.
Situated within the Mississippi Canyon, the Rydberg mission has estimated confirmed and possible reserves of 38 MMboe.
“Rydberg will additional enhance manufacturing within the Norphlet Hall at Appomattox, which is persistently certainly one of our highest producing property”, Howe, the deepwater govt vp at Shell, stated in a press release February 22.
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