Shell Offshore Inc., a subsidiary of Shell plc, has made an exciting announcement about its continued commitment to energy production in the U.S. Gulf of Mexico (GoM). The company has reached a Final Investment Decision (FID) for the Phase 3 Silvertip project. This new venture aims to deliver two high-performing wells at the Shell-operated Perdido spar.
This development, a joint effort with Chevron (Shell – 40%, operator; Chevron – 60%), targets the Silvertip Frio reservoir. Once operational, these wells are expected to collectively produce up to 6,000 barrels of oil equivalent per day (boed) at peak rates, with production scheduled to begin in 2026.
Prioritizing High-Value, Low-Carbon Production
According to Rich Howe, Shell’s Executive Vice President for Deep Water, “This investment at Perdido is another example of our focus on high-margin, lower-carbon intensity barrels. As the largest operator in the U.S. Gulf of Mexico, we prioritize opportunities nearby our existing assets in these advantaged corridors, where we are well-positioned to develop shorter-cycle, high-value tieback opportunities.”
This announcement showcases Shell’s strategic approach: targeting high-value oil resources while keeping carbon emissions at a minimum. It’s worth noting that oil production in the Gulf of Mexico is among the lowest greenhouse gas (GHG) intensity in the world, making it a vital part of the transition to a sustainable energy future.
The Backbone of the Gulf: The Perdido Spar
Perdido, Shell’s production spar in the U.S. Gulf of Mexico, is located within the Alaminos Canyon—approximately 200 miles offshore south of Galveston, Texas, at a depth of 8,000 feet. The Phase 3 Silvertip project includes two new wells that will connect to Perdido’s existing subsea infrastructure.
Shell operates the Perdido Regional Host (PRH) with a 35% working interest (WI). Chevron holds a 37.5% WI, 3C Perdido Holdings has a 26.5% WI, and BP holds a 1% WI.
A Long-Term Commitment to the U.S.
The Phase 3 Silvertip project underlines Shell’s long-term dedication to U.S. energy production. Investments like these are essential to ensuring a reliable and secure energy supply while supporting sustainability goals.
By focusing on shorter-cycle, high-value tiebacks, Shell demonstrates its leadership in deep-water innovation and efficiency. The Phase 3 Silvertip project is not just a step forward for energy production; it’s a significant move toward balancing energy demands with environmental responsibility.
Published: December 12 2024, Source: World Oil
