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Shell starts production at new Gulf of Mexico site

EditorLina Guerrero
Published 02/22/2024, 04:10 PM
Updated 02/22/2024, 04:10 PM
© Reuters.

HOUSTON - Shell (LON:SHEL) Offshore Inc., a subsidiary of Shell plc, has commenced production at its Rydberg project, a deep-water venture in the Gulf of Mexico. The site is expected to contribute approximately 16,000 barrels of oil equivalent per day (boe/d) at its peak production.

Rydberg, a subsea development, is tied back to the Shell-operated Appomattox hub, located around 75 miles off the coast of Louisiana. This addition is set to enhance output in the Norphlet Corridor, where Appomattox is already one of Shell's most prolific assets.

"Rydberg will further boost production in the Norphlet Corridor at Appomattox, which is consistently one of our highest producing assets," stated Rich Howe, Shell Deep Water Executive Vice President. He emphasized the company's commitment to fulfilling current and future energy demands while seeking growth opportunities in the Gulf of Mexico.

Shell is recognized as a leading operator in the region, with its production noted for having one of the lowest greenhouse gas (GHG) intensities globally. The Rydberg field is located in the Mississippi Canyon, submerged under approximately 7,450 feet of water. The development includes two production wells connected through a 12-mile insulated flowline with a dynamic umbilical.

The leases where Rydberg is situated are 80% owned by Shell, with CNOOC (NYSE:CEO) Ltd holding the remaining 20% stake. Similarly, Shell holds a 79% working interest in the Appomattox hub, with CNOOC owning the remaining 21%.

Regarding environmental impact, Shell's U.S. Gulf of Mexico production is among the lowest in GHG intensity worldwide compared to other oil and gas-producing members of the International Association of Oil & Gas Producers (IOGP).

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The current estimated recoverable resource volume for Rydberg is pegged at 38 million boe, classified as 2P under the Society of Petroleum Engineers' Resource Classification System. The figures presented are total gross estimates, encompassing 100% of the expected production and resources.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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