NewsThe Offshore Frontier

Shell starts production at Stones in the Gulf of Mexico

Shell announced that production has started from the Stones development in the Gulf of Mexico. Stones is expected to produce approximately 50,000 barrels of oil equivalent per day (BOED) when fully ramped up at the end of 2017.

The host facility for the world’s deepest offshore oil and gas project is a floating production, storage and offloading (FPSO) vessel. It is the 13th FPSO in Shell’s global deepwater portfolio and produces through subsea infrastructure beneath 9,500 ft (2,900 m) of water. Stones underscores Shell’s long-standing leadership in using FPSOs to safely and responsibly unlock energy resources from deepwater assets around the world.

“Stones is the latest example of our leadership, capability and knowledge, which are key to profitably developing our global deepwater resources,” Andy Brown, Upstream Director, Royal Dutch Shell, said. “Our growing expertise in using such technologies in innovative ways will help us unlock more deepwater resources around the world.”

Stones, which is 100% owned and operated by Shell, is the company’s second producing field from the Lower Tertiary geologic frontier in the Gulf of Mexico, following the start-up of Perdido in 2010.

The project demonstrates Shell’s commitment to realizing significant cost savings through innovation. It features a more cost-effective well design, which requires fewer materials and lowers installation costs. This is expected to deliver up to $1 billion reduction in well costs once all the producers are completed.

The FPSO is also designed to operate safely during storms. In the event of a severe storm or hurricane, it can disconnect and sail away from the field. Once the weather event has passed, the vessel would return and safely resume production.

Shell’s global deepwater business is a growth priority for the company and currently produces 600,000 BOED. Deepwater production is expected to increase to more than 900,000 BOED by the early 2020s from already discovered, established reservoirs. Three other Shell-operated projects are currently under construction or undergoing pre-production commissioning: Coulomb Phase 2 and Appomattox in the Gulf of Mexico and Malikai in Malaysia.

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