Shell Successfully Brings Online Deepwater Oil Initiative in Gulf of Mexico
Shell Successfully Brings Online Deepwater Oil Initiative in Gulf of Mexico

Shell Successfully Brings Online Deepwater Oil Initiative in Gulf of Mexico

  • 26-Feb-2024 12:23 PM
  • Journalist: Timothy Greene

Shell Offshore Inc, a subsidiary of the UK-headquartered energy giant Shell, has initiated production from a deepwater oil project situated in the U.S. Gulf of Mexico (GOM). This project involves a subsea tie-back to Shell's operated Appomattox production hub, marking a significant milestone in the company's efforts to harness offshore oil resources.

The Rydberg subsea tie-back to the Shell-operated Appomattox asset is designed to achieve an estimated peak production of 16,000 barrels of oil equivalent (boe) per day. This subsea infrastructure incorporates two production wells connected through a single insulated 12-mile flowline along with a dynamic umbilical. Rich Howe, Shell Deep Water Executive Vice President, expressed optimism about the positive impact of Rydberg on boosting production in the Norphlet Corridor at Appomattox, highlighting the consistent performance of Appomattox as one of their highest producing assets.

According to Shell, Rydberg's current estimated recoverable resource volumes stand at 38 million boe, classified as 2P under the Society of Petroleum Engineers' Resource Classification System. Shell underscores its pioneering role in bringing assets online in the Norphlet Corridor, citing the successful initiation of Appomattox in 2019. In the Appomattox operation, Shell operates with a 79% working interest, with the remaining 21% held by CNOOC.

Shell also emphasizes its commitment to environmental sustainability, noting that its production in the U.S. Gulf of Mexico boasts among the lowest greenhouse gas (GHG) intensity globally for producing oil when compared to other IOGP (International Association of Oil & Gas Producers) oil and gas-producing members. In March 2023, Shell made a final investment decision (FID) for the Dover deepwater project within Mississippi Canyon, situated approximately 170 miles offshore southeast of New Orleans, Louisiana, in the U.S. Gulf of Mexico.

The Dover project is set to be developed as another subsea tie-back to Appomattox, and production is anticipated to commence in late 2024 or early 2025. A month prior to the FID for the Dover project, Shell commenced production at the Vito platform in the U.S. Gulf of Mexico, showcasing the company's ongoing commitment to advancing offshore projects and expanding its footprint in the region. The strategic development of these deepwater projects aligns with Shell's long-term vision for meeting energy demands while adhering to environmental sustainability standards.

Shell's recent achievement of initiating production at the Rydberg deepwater oil project underscores the company's prowess in offshore exploration and development. The subsea tie-back to the Appomattox production hub signifies an integrated approach to maximizing the potential of the Norphlet Corridor in the U.S. Gulf of Mexico. With an emphasis on environmental responsibility, Shell's operations in the region are positioned to contribute to sustainable energy solutions. As the company progresses with upcoming projects like Dover, it continues to shape the future of offshore oil production in the U.S. Gulf of Mexico.

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