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Shell begins production early at Appomattox

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Shell’s Appomattox floating production system in the Gulf of Mexico has begun production several months ahead of schedule, making it the first commercial discovery brought into production in the deep-water Norphlet formation.
The Shell Appomattox platform located in the Gulf of Mexico
(The Shell Appomattox platform located in the Gulf of Mexico. Image via Shell).

Appomattox currently has an expected production of 175,000 barrels of oil equivalent per day (boe/d) and is located approximately 80 miles south east of Louisiana in approximately 2,200 metres of water.

Commenting on the beginning of production, Upstream Director at Shell, Andy Brown, 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.”

Shell’s development of Appomattox has focused on delivering efficiency through innovation.

Methods such as optimised development planning, better designs and fabrication, and expert drilling execution have realised cost savings of more than 40% since Shell made the final investment decision on the project back in 2015.

Shell’s global deep-water business has a strong funnel of development and exploration opportunities in Brazil, the US, Mexico, Nigeria, Malaysia, Mauritania, and the Western Black Sea. Production worldwide is on track to reach more than 900,000 boe/d by 2020 from already discovered, established reservoirs. The company continues to be one of the largest leaseholders in the US deep-water and remains one of the most prolific offshore producers of oil and natural gas in the Gulf of Mexico. Shell designs and operates its deep-water projects to be competitive and, since 2014, has reduced its unit development costs and unit operating costs by about 45%.

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Tags: Oil & Gas
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