HOUSTON—Shell Midstream Partners LP (NYSE: SHLX), a midstream MLP formed by Royal Dutch Shell plc announced Nov. 28 that Amberjack Pipeline Co. LLC, a joint venture between Shell Midstream Partners and Chevron Pipe Line Co., received the first crude oil barrels of throughput from Chevron U.S.A. Inc.’s operated Big Foot platform on Nov 21.
“The Gulf of Mexico is a key component of our diverse portfolio as we continue to see growth in production demonstrated by the Chevron-operated Big Foot project. Amberjack is strategically located and provides exceptional connectivity offering transportation options along the Texas and Louisiana Gulf Coast,” said Kevin Nichols, CEO of Shell Midstream Partners GP LLC. “We anticipate ongoing organic growth on Amberjack in the next year from continued in-field development.”
The Big Foot field was first discovered in 2006 by Chevron and is estimated to contain total recoverable resources of more than 200 million oil-equivalent barrels and has a projected production life of 35 years. Big Foot is designed for a capacity of 75,000 barrels of oil per day.
Shell Midstream Partners acquired 75% of the issued and outstanding Amberjack Series A membership interests and 50% of the issued and outstanding Amberjack Series B membership interests in May 2018, which was the partnership’s largest acquisition to date. The system has delivered organic growth of 16% since being acquired by the partnership.
The Leopard well hit more than 600 ft of net oil pay at multiple levels, Shell said.
The most active operator continues to be Permian Basin-focused Pioneer Natural Resources at 30 rigs, which includes nine more rigs after closing its acquisition of privately held DoublePoint Energy.
Utilizing the technology of Denver-based Project Canary, the pilot project will extend across the energy value chain—from production, transportation and marketing of responsibility sourced natural gas—for consumer and community use locally in Colorado.