Large deepwater discovery in Gulf of Mexico for Shell

Shell announced at the close of January one of its largest US Gulf of Mexico exploration finds in the past decade from the Whale deepwater well. The well encountered more than 427 metres of oil bearing pay. Evaluation of the discovery is ongoing, and appraisal drilling is underway to further delineate the discovery and define development options. 

Whale is operated by Shell (60%) and co-owned by Chevron (40%). It was discovered in the Alaminos Canyon block 772, adjacent to the Shell-operated Silvertip field and approximately 10-miles from the Shell-operated Perdido platform.

This major discovery in a Shell heartland adds to the company’s Paleogene exploration success in the Perdido area. Through exploration, Shell has added more than 1bn boe of resources in the last decade in the Gulf of Mexico. The company currently has three Gulf of Mexico deepwater projects under construction – Appomattox, Kaikias, and Coulomb Phase 2 – as well as investment options for additional subsea tiebacks and Vito, a potential new hub in the region. 

Shell expects its global deepwater production to exceed 900,000 boe/d by 2020, from already discovered, established areas. 

Shell also reports that it secured nine key blocks in Mexico’s latest deepwater bid round – four on its own, one with its partner Pemex Exploración y Producción, and four with its partner Qatar Petroleum. Shell will be the operator of all nine blocks.