Royal Dutch Shell, through its subsidiary Shell Offshore (Shell), announced that production has started at the Shell-operated Appomattox floating production system months ahead of schedule, opening a new frontier in the deepwater US Gulf of Mexico.
Appomattox, which currently has an expected production of 175,000 barrels of oil equivalent per day (BOE/d), is the first commercial discovery now brought into production in the deepwater Gulf of Mexico Norphlet formation.
“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,” Andy Brown, Upstream Director, Royal Dutch Shell, said. “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 story of efficiency through innovation. By way of optimized development planning, better designs and fabrication, and expert drilling execution, Appomattox has realized cost reductions of more than 40% since taking final investment decision in 2015. The start of production at Appomattox is only just the beginning of further maximizing the flow of resources in the prolific Norphlet surrounding Appomattox.
Shell’s global deepwater 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 deepwater projects to be competitive and, since 2014, has reduced its unit development costs and unit operating costs by about 45%.