Wedoany.com Report-Dec.28, Shell and INEOS Energy have announced their first oil discovery in the Gulf of Mexico following the successful drilling of the Nashville exploration well, a deepwater Norphlet prospect.

The Nashville well was drilled more than 8km beneath the seabed and encountered hydrocarbons in the Norphlet formation.

The well encountered hydrocarbons in the Norphlet formation, recognised as one of the most promising deepwater formations in the region. The discovery was made more than five miles (8 kilometres) beneath the seabed.

Shell operates the well with a 79% working interest, while INEOS Energy holds the remaining 21%.

The Nashville well was drilled using the Deepwater Proteus rig, described as one of the most advanced offshore drilling units in the world.

Further technical evaluation is currently underway to determine the size of the discovery. The find has the potential to be tied back to Shell’s nearby Appomattox production platform, which Shell operates and owns jointly with INEOS.

David Bucknall, CEO of INEOS Energy, said: “This is a good result for INEOS Energy and an important step in building our presence in the US Gulf where world-class resources are to be found and developed responsibly. We believe Nashville will help strengthen energy security and provide reliable supplies for many years to come.”

Heather Osecki, CEO of INEOS Energy’s US Gulf business, said: “The drilling results at Nashville are very encouraging and fully in line with what we hoped to find. This discovery is an important first step in our plans to grow our existing assets while we look to further strengthen our position in the Gulf. We look forward to continuing our work to bring further value to the Appomattox host platform.”

The announcement marks a significant milestone for INEOS Energy in establishing its footprint in the US Gulf of Mexico. The Norphlet formation has long been viewed as a key geological target for deepwater exploration in the area, offering potential for substantial hydrocarbon resources.

The discovery aligns with both companies’ strategies to develop high-quality, reliable energy supplies in a responsible manner. The proximity to the existing Appomattox platform provides a practical pathway for future development, enabling efficient tie-back and utilisation of established infrastructure.

This result supports ongoing efforts to enhance energy security through the responsible development of domestic resources. The Nashville prospect adds to the portfolio of projects that can deliver long-term value and contribute to stable energy provision.

In a related development from earlier in the year, INEOS signed an eight-year natural gas supply agreement with Covestro in May 2025, set to commence in 2027. This contract reflects INEOS’s broader approach to securing and delivering energy solutions across multiple markets.

The collaboration between Shell and INEOS Energy demonstrates the value of joint efforts in exploring and developing challenging deepwater environments. The companies continue to advance technical work to fully assess the discovery and plan next steps.

The Nashville find strengthens the outlook for future activity in the US Gulf, highlighting the region’s enduring potential for resource development.