Shell adds to Gulf of Mexico production with Silvertip Phase 3 startup

The wells will boost production at the Perdido spar and are expected to collectively produce up to 6,000 boe/d at peak rates.

Key Highlights

  • Two Phase 3 wells in the Silvertip Frio reservoir have begun production.
  • The wells are expected to produce up to 6,000 boe/d combined at peak rates.

Shell Offshore Inc., a Shell plc subsidiary, started production at Phase 3 of the Silvertip project which will deliver two wells to boost production at the Perdido spar in the US Gulf of Mexico.

These wells, in the Silvertip Frio reservoir, are tied into existing subsea infrastructure and are expected to collectively produce up to 6,000 boe/d at peak rates. Silvertip’s Phase 3 estimated 2P recoverable resources are 17 MMboe.

The Perdido production spar lies within Alaminos Canyon, about 200 miles south of Galveston, Tex., in about 8,000 ft of water. Perdido’s production capacity is 125,000 boe/d at peak rates.

Shell is operator of the Perdido Regional Host (PRH) with 35% interest. Partners are Chevron USA Inc. (37.5%), 3C Perdido Holdings (26.5%), and bp PLC (1%).

Shell is also operator of Silvertip Frio (40%) with Chevron USA holding the remaining 60%.

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