Shell’s Appomattox Platform in the Gulf of Mexico now online months ahead of schedule and far under budget 

Shell’s Appomattox Platform in the Gulf of Mexico now online months ahead of schedule and far under budget

(PRESS RELEASE) THE HAGUE, 24-May-2019 — /EuropaWire/ — Shell Offshore Inc, a subsidiary of Royal Dutch Shell plc, announced it has begun production at the Shell-operated Appomattox floating production system in the deep-water of the Gulf of Mexico (US). The production starts months ahead of schedule opening a new frontier for Shell in the region.

Shell owns 79% of the Appomattox as the operator in a joint venture with CNOOC Petroleum Offshore U.S.A. Inc., which controls the remaining 21% and is a subsidiary of CNOOC Limited.

175,000 barrels of oil equivalent per day (boe/d) is the expected production of Appomattox. Appomattox’s estimated peak production represents 100% total gross figures. The Appomattox Platform in the Gulf of Mexico is the first commercial discovery now brought into production in the deep-water Gulf of Mexico Norphlet formation.

The location of the Appomattox floating production platform is some 129 kilometres (80 miles) in the Gulf of Mexico Norphlet formation (south east of Louisiana) in approximately 2,255 metres (7,400 feet) of water.

The Appomattox has been the industry-first in a series of commercial discoveries by Shell in the Norphlet in 2010.

Commenting on the production start at Appomattox, Andy Brown, Upstream Director, Royal Dutch Shell, said:

“That Appomattox was safely brought online ahead of schedule and far under budget is a testament to our ongoing commitment to drive down costs through efficiency improvements during execution. Appomattox creates a core long-term hub for Shell in the Norphlet through which we can tie back several already discovered fields as well as future discoveries.”

Appomattox is a great example of efficiency through innovation. Appomattox has realised cost reductions of more than 40% since the final investment decision was made in 2015 by relying on optimised development planning, better designs and fabrication and expert drilling execution. The start of production at Appomattox is only just the beginning of further maximising the flow of resources in the prolific Norphlet surrounding Appomattox’s platform.

The global deep-water business of Shell has a strong funnel of development and exploration opportunities in Brazil, the US, Mexico, Nigeria, Malaysia, Mauritania, and the Western Black Sea. Shell’s production worldwide is on track to reach more than 900,000 boe/d by 2020 from what has already been discovered and established reservoirs. When it comes to the US deep water, Shell is one of the largest leaseholders and remains one of the most prolific offshore producers of oil and natural gas in the Gulf of Mexico.

Shell’s deep-water projects are designed and operated to be competitive and the company has achieved a remarkable reduction of its unit development costs and unit operating costs by about 45%.

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SOURCE: Shell