Shell (LON: SHEL) has announced the start up of production at its PowerNap subsea development in the US Gulf of Mexico.
A tie-back to the supermajor’s Olympus production hub in the Mars Corridor, the scheme is estimated to yield 20,000 barrels of oil equivalent per day (boe/d) at peak production.
Shell is the leading deep-water operator in the Gulf of Mexico, and the company says its activities produce among the lowest levels of greenhouse gases in the world.
It also has an “exciting frontier exploration portfolio” in Mexico, Suriname, Argentina and West Africa.
Zoe Yujnovich, Shell upstream director, said: “Shell has been producing in the Mars Corridor for more than 25 years, and we continue to find ways to unlock even more value there.
“PowerNap strengthens a core Upstream position that is critical to achieving our Powering Progress strategy and ensuring we can supply the stable, secure energy resources the world needs today and in the future.”
PowerNap
Shell uncovered PowerNap in 2014 and holds a 100% stake in the project.
It is located in the south-central Mississippi Canyon area, about 150 miles from New Orleans in about 1,280 metres of water.
PowerNap consists of three production wells produced through a single insulated 19-mile flowline and high-pressure gas lift capability.
Shell operates Olympus with a 71.5% working interest, with BP controlling the remaining 28.5%.