Shell makes ‘large’ Gulf of Mexico oil discovery

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Shell today announced the discovery of a large deep-water well in the US Gulf of Mexico.

Dover is Shell’s sixth discovery in the Norphlet region and was encountered at more than 800 feet from the surface.

Shell said the discovery lies 13 miles from the Appomattox oil field and “is considered an attractive potential tieback”.

The oil firm confirmed that the Appomattox platform “has now arrived on location in the US Gulf of Mexico” and is due to begin production at the end of 2019.

Andy Brown, upstream director for Royal Dutch Shell, said: “Dover showcases our expertise in discovering new, commercial resources in a heartland helping deliver our deep-water growth priority. By focusing on near-field exploration opportunities in the Norphlet, we are adding to our resource base in a prolific basin that will be anchored by the Appomattox development.”

Shell added it expects global deep-water oil and gas production to exceed 900,000 barrels of oil equivalent per day by 2020, “from already discovered, established areas”.

The oil firm was granted permission to develop the Appomattox deepwater oil and gas field in the Gulf of Mexico in 2015, set to be the energy giant’s largest floating platform in the region.

The Appomattox project lies 80 miles off the coast of the US southern state of Louisiana.

Shell holds a 79% stake in the project while Nexen Petroleum, a wholly owned subsidiary of China’s CNOOC, holds the remaining 21 percent.

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