New pipeline transports first oil from Shell’s Appomattox
Shell Midstream Partners has informed that the systems owned by Proteus Oil Pipeline Company and Endymion Oil Pipeline Company increased volumes of crude oil from the startup of the Shell-operated Appomattox floating production system in the Gulf of Mexico via the newly commissioned Mattox Pipeline.
The Mattox Pipeline is majority owned and operated by Shell Pipeline Company (SPLC). Shell Midstream Partners owns a 10% interest in each of Proteus and Endymion.
“The Gulf of Mexico remains an important part of the US production story – as evidenced by these new volumes,” said Kevin Nichols, CEO, Shell Midstream Partners.
“Over the last three years, most of the 19 sanctioned projects across the Gulf of Mexico flow through our systems, giving us the ideal position to capture growth. Our offshore corridor strategy is working – and we are pleased with the resilience and growth that the Gulf of Mexico provides.”
Appomattox, which currently has an expected production of 175,000 boe/d, achieved first oil on May 23, 2019. According to Shell, Appomattox has realized cost reductions of more than 40% since taking the final investment decision in 2015. Shell is the operator of the project with a 79 percent stake, while China’s CNOOC owns 21 percent.
The Mattox Pipeline is transporting oil from Appomattox into the Proteus and Endymion systems, which ultimately connect to onshore markets via the Clovelly, LA storage hub.
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