POST Online Media Lite Edition



 

Shell's journey to the center of the Earth

Staff writer |
Royal Dutch Shell announced a final investment decision in the Stones ultra-deepwater project, a Gulf of Mexico oil and gas development expected to host the deepest production facility in the world.




This decision sets in motion the construction and fabrication of a floating production, storage, and offloading (FPSO) vessel and subsea infrastructure.

The development will start with two subsea production wells tied back to the FPSO vessel, followed by six additional production wells. This first phase of development is expected to have annual peak production of 50,000 boe/d from more than 250 million boe of recoverable resources. The Stones field has significant upside potential and is estimated to contain more than 2 billion boe of oil in place.

"This important investment demonstrates our ongoing commitment to usher in the next generation of deepwater developments, which will deliver more production growth in the Americas," said John Hollowell, Executive Vice President for Deepwater, Shell Upstream Americas.

The Stones field is located in 9,500 feet (2,896 meters) of water, approximately 200 miles (320 kilometers) southwest of New Orleans, Louisiana, and was discovered in 2005. The project encompasses eight US Federal Outer Continental Shelf lease blocks in the Gulf of Mexico’s Lower Tertiary geologic trend.


What to read next

Shell taking steps to secure assets in Gulf of Mexico from severe weather
Shell sells Australian aviation fuel unit
Shell sold its 20% stake in Vivo Energy Holding B.V. for $250 million