Shell takes FID for Whale development in Gulf of Mexico

Shell Offshore Inc., a Royal Dutch Shell PLC subsidiary, has taken final investment decision (FID) for the Whale US Gulf of Mexico deepwater development. Cash-preservation efforts brought on by the impact from the pandemic delayed project FID by 1 year. Production is scheduled to begin in 2024.

Shell added to its Paleogene exploration success in the Perdido area in the deepwater US Gulf of Mexico with the Whale discovery in 2017 (OGJ Online, Jan. 18, 2018). The well, in 8,000 ft of water, encountered 1,400 net ft of oil-bearing pay.

The FPU lies in the Alaminos Canyon Block 773 and is adjacent to the Shell-operated Silvertip field, some 10 miles from the Shell-operated Perdido platform and 200 miles southwest of Houston. Fifteen oil producing wells are expected.

Whale’s design closely replicates Vito, a four-column semisubmersible host facility in the greater Mars Corridor. Vito is scheduled to begin production in 2022.

Whale is expected to reach peak production of 100,000 boe/d and currently has an estimated, recoverable resource volume of 490 MMboe.

Shell Offshore is operator with 60% interest. Chevron USA Inc. holds the remaining 40%.