Shell, the UK-based energy company, has commenced production in phase three of the deepwater Silvertip development project. This project aims to add up to 6,000 barrels of oil equivalent per day (boe/d) at peak rates, leveraging existing regional host infrastructure.
Details of Phase Three of the Silvertip Project
Phase three of the Silvertip project includes two wells developed to increase production at the Perdido platform, which is operated by Shell. These wells are located in the Silvertip Frio reservoir, with Shell (40 percent) partnering with Chevron (60 percent) in this project. These wells are expected to jointly produce up to 6,000 barrels of oil equivalent per day.
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Strategic and Economic Impacts
Colette Hirstius, Shell's Executive Vice President for the Gulf of Mexico and President of Shell USA, stated: "By adding new production through existing Perdido infrastructure, we can safely create more value and optimize the life of a world-class asset. This move demonstrates that we are maximizing our assets in the Gulf of Mexico and contributing to reliable energy supply from one of the most competitive deepwater fields in the world."
As the regional host operator of Perdido (PRH), Shell holds a 35 percent operational stake, while Chevron holds 37.5 percent, 3C Perdido Holdings holds 26.5 percent, and BP holds one percent. Perdido is a production platform in the Gulf of Mexico located offshore from the Alaminos Canyon, about 200 miles south of Galveston, Texas, at a depth of approximately 8,000 feet.
The development concept for phase three of Silvertip refers to two wells connected to existing subsea infrastructure. The estimated recoverable resource volume for this project is 17 million barrels of oil equivalent. The resource volume estimate is currently classified under the Society of Petroleum Engineers (SPE) resource classification system as 2P.
The deepwater development of Perdido includes a spar platform that serves as a production hub for three deepwater fields: Silvertip, Tobago, and Great White. Shell has recently completed the sale of 50 percent of its non-operating interest in the Na Kika platform and related fields to a subsidiary of Talos Energy and a partner from Ridgewood Energy.
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