Shell ups its production ante with first oil from US Gulf project’s third chapter

Shell Offshore, a subsidiary of the UK-headquartered energy giant Shell, has kicked off production at a new phase of its deepwater development project, leveraging its regional host infrastructure to add up to 6,000 barrels of oil equivalent per day (boe/d) at peak rates.

Shell has brought online Phase 3 of the Silvertip project, which will deliver two wells to boost production at its operated Perdido spar in the Gulf of America. These wells in the Silvertip Frio reservoir, led by Shell (40%) in partnership with Chevron (60%), are expected to collectively produce up to 6,000 barrels of oil equivalent per day at peak rates.  

Colette Hirstius, Shell's Executive Vice President for GoA and Shell USA President, commented: "By adding new production through existing Perdido infrastructure, we can safely deliver more value and optimize the life of a world-class asset.

"This is further proof of how we are making the most out of our assets in the GoA, helping to provide secure energy from one of the most competitive deep-water basins in the world."

Shell is the operator of the Perdido Regional Host (PRH) and has a 35% working interest, with Chevron holding a 37.5% stake, 3C Perdido Holdings 26.5%, and BP 1% interest. Perdido is a production spar in the U.S. Gulf, located offshore within Alaminos Canyon, approximately 200 miles south of Galveston, Texas, in about 8,000 feet of water.

The development concept for Phase 3 Silvertip entails two wells, tied into existing subsea infrastructure. The current estimated recoverable resource volumes of this project are 17 million boe.

The estimate of resource volumes is currently classified as 2P under the Society of Petroleum Engineers' Resource Classification System. The Perdido offshore development comprises a spar platform that serves as a production hub for three deepwater fields: Silvertip, Tobago, and Great White.

Shell recently wrapped up the sale of its 50% non-operated working interest in the Na Kika platform and associated fields in the Gulf of America as well as its 100% owned Coulomb tie-back to a subsidiary of Talos Energy and an affiliate of Ridgewood Energy.