Shell to buy FPSO serving Stones project

July 11, 2017
Shell E&P Offshore Services BV exercised its right under a charter agreement to buy the Turritella floating production, storage, and offloading vessel from SBM Offshore NV.

Shell E&P Offshore Services BV exercised its right under a charter agreement to buy the Turritella floating production, storage, and offloading vessel from SBM Offshore NV.

The $1-billion transaction allows Shell to assume operatorship of the offshore Stones development in its entirety. Turritella is the second FPSO to operate in the Gulf of Mexico. The transaction is expected to close in early 2018.

The Stones development is in 9,500 ft of water some 200 miles offshore Louisiana in the Walker Ridge area. The Turritella FPSO has a turret with a disconnectable buoy allowing it to weathervane in normal conditions and to disconnect before the approach of a hurricane.

The company selling the asset is a joint-venture owned by SBM Offshore with 55% interest, Mitsubishi Corp. with 30% interest, and Nippon Yusen Kabushiki Kaisha with 15% interest.