First production is expected in 2026 and each well will produce up to 6,000 boe/d at peak rates. (Source: Shutterstock)
Shell Plc and Chevron Corp. are taking a final investment decision on Phase 3 of the Silvertip project in the Gulf of Mexico (GoM), subsidiary Shell Offshore Inc. announced Dec. 12.
The project will deliver two wells in the Shell-operated Silvertip Frio Reservoir (Shell, 40% ownership; Chevron, 60%) tied to existing subsea infrastructure.
The project will boost production at the GoM Perdido spar located in the Alaminos Canyon approximately 200 miles offshore in approximately 8,000 ft of water.
Current Phase 3 estimated recoverable resource volumes are 17 MMboe. First production is expected in 2026 and each well will produce up to 6,000 boe/d at peak rates.
"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," said Rich Howe, Shell's executive vice president for deepwater.
Shell is operator of the Perdido Regional Host and holds 35% working interest (WI). Chevron U.S.A. Inc. holds 37.5% WI, 3C Perdido Holdings holds 26.5% and BP has 1% WI.
Recommended Reading
Devon Ups Delaware Basin Ante With 21-Well Pad, Secondary Zones
2024-11-06 - Devon Energy is producing record volumes from the Delaware Basin—its biggest asset—where the company drilled a 21-well pad targeting six different intervals in recent months.
Diamondback Touts Land, Cheap Gas to Lure Data Centers to Permian
2024-11-05 - With 65,000 land acres, cheap natural gas and an abundant produced water supply, Diamondback wants to lure power-hungry data centers to West Texas.
Exclusive: Early Findings Show Untapped Potential in Barnett Exploration
2024-12-03 - Steven Jolley, Halliburton’s Permian Basin technology manager, gives insight into potential for new drilling opportunities around Andrews County and efficiencies operators are seeing within the Permian, in this Hart Energy Exclusive interview.
Shale Outlook Permian: The Once and Future King Keeps Delivering
2025-01-11 - The Permian Basin’s core is in full-scale manufacturing mode, with smaller intrepid operators pushing the basin’s boundaries further and deeper.
Jefferies: With Permian Locked Up, E&Ps Hunt for New L48 Runway
2024-11-26 - With the core of the Permian Basin largely locked up, “intrepid operators” are hunting for runway in more nascent Lower 48 basins and in less developed Permian benches.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.