Shell sanctions deepwater project in U.S. Gulf of Mexico
Shell Offshore Inc, a subsidiary of the UK-headquartered energy giant Shell, has taken a final investment decision (FID) for a deepwater project in the U.S. Gulf of Mexico (GOM), which will be developed as a subsea tie-back to the oil major’s operated Appomattox production hub.
While announcing the FID for the Dover subsea tie-back to the Appomattox production hub in the U.S. Gulf of Mexico, Shell explained that the project would start production in late 2024 or early 2025. Dover is expected to produce up to 21,000 barrels of oil equivalent per day (boe/d) at peak rates.
Paul Goodfellow, Shell’s Executive Vice President for Deepwater, remarked: “Shell is a pioneer in the Norphlet reservoir with Appomattox, and we are building on our leading position in the reservoir with Dover. Last year we took FID on Rydberg, another subsea tie-back to Appomattox, and Dover gives us an opportunity to add to our base in this prolific basin.”
Located within Mississippi Canyon, approximately 170 miles offshore southeast of New Orleans, Louisiana in about 7,500 feet of water, Dover was discovered in 2018 and Shell holds a 100 per cent working interest in this asset.
The development concept for Dover entails a subsea tie-back to the Appomattox production hub, with two production wells produced through a 17.5-mile flowline and riser. Shell operates Appomattox with a 79 per cent working interest while CNOOC controls the remaining 21 per cent.
According to Shell, the investment at Dover underscores the firm’s long-term commitment to the U.S. Gulf of Mexico, where production has among the lowest greenhouse gas (GHG) intensity in the world for producing oil.
Furthermore, the company underscores that its Powering Progress strategy to thrive through the energy transition includes increasing investment in lower-carbon energy solutions, while “continuing to pursue the most energy-efficient and highest-return Upstream investments to supply safe, secure energy supplies today and for decades to come.”
Regarding Shell’s recent activities, it is worth noting that the oil major kicked off production at the Vito platform in the U.S. Gulf of Mexico last month. In addition, the energy giant made a new oil discovery in an exploration well offshore Namibia with Northern Ocean’s Deepsea Bollsta semi-submersible drilling rig.
This is the third oil discovery in Namibia since February 2022.