Royal Dutch Shell has made a major new deepwater oil discovery in the U.S. Gulf of Mexico, the company said Wednesday morning.
The “significant” discovery was made at the Blacktip prospect, the company said.
“Blacktip is Shell’s second material discovery in the Perdido Corridor and is part of a continuing exploration strategy to add competitive deep water options to extend our heartlands,” said Andy Brown, Upstream Director for Royal Dutch Shell, in a statement.
Drilling at the initial Blacktip well underway and so far the companies have encountered more than 400 feet net oil pay with “:good reservoir and fluid characteristics”.
The well is currently being deepened to further assess the structure’s potential.
The find presents the opportunity to add to existing production in near the area of Shell’s Perdido platform, which has been producing since 2010, the company said. Through exploration, Shell has added more than one billion barrels of oil equivalent in the last decade in the Gulf of Mexico.
The company’s global deep-water production is on track to exceed 900,000 barrels of oil equivalent per day by 2020, from already discovered, established areas.