Shell's Silvertip Field Phase 3 in the U.S. Starts Production, Peak Output of 6,000 Barrels of Oil Equivalent per Day

en.Wedoany.com Reported - On October 28, Shell Offshore, a subsidiary of Shell, announced that Phase 3 of the Silvertip field in the U.S. Gulf of Mexico has officially commenced production. The project ties in two production wells to the existing subsea production system, with oil and gas processed through the Perdido deepwater production platform operated by Shell. The two wells are located in the Frio reservoir of the Silvertip field and are expected to reach a combined peak production of up to 6,000 barrels of oil equivalent per day. This incremental capacity represents an expansion development of existing deepwater oil and gas facilities.

The Silvertip Phase 3 project utilizes the already-built subsea production infrastructure to tie in new production wells to the Perdido platform. The platform is located in the Alaminos Canyon area of the Gulf of Mexico, approximately 322 kilometers south of Galveston, Texas, in water depths of about 2,438 meters. Shell serves as operator of the Silvertip Phase 3 project with a 40% interest, while Chevron U.S.A. Inc. holds the remaining 60%.

Shell disclosed that the Silvertip Phase 3 project currently has estimated recoverable resources of 17 million barrels of oil equivalent, classified as 2P reserves under the Society of Petroleum Engineers resource classification system. The expected peak production of 6,000 barrels of oil equivalent per day and the recoverable resources of 17 million barrels of oil equivalent are both stated on a 100% project interest basis and should not be interpreted as Shell's net entitlement production based on its 40% equity stake.

The Perdido regional production facilities are operated by Shell, with Shell holding a 35% interest, Chevron U.S.A. Inc. holding 37.5%, 3C Perdido Holdings holding 26.5%, and BP holding 1%. The final investment decision for Silvertip Phase 3 was made in December 2024, and the commencement of production from these two wells marks the transition from development and construction to production operations.