The hull for Royal Dutch Shell’s Appomattox field development project has set sail from Geoje, South Korea to Ingleside, Texas for completion of construction.
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| Source: Shell |
Fabrication on the deepwater Gulf of Mexico project is now more than 60% complete, a Shell spokesperson told OE, and the project remains on track to start producing oil by the end of the decade.
Appomattox will add approximately 175,000 boe/d to Shell’s production when it reaches peak production, with a break-even price below $50 per barrel.
“The Appomattox development is an attractive and competitive investment in Shell’s portfolio, even more so as the team has reduced costs more than 20% since the project was sanctioned, while delivering a safe and responsible project that will position Shell for competitive and sustainable growth in the Gulf of Mexico for years to come,” Kimberly Windon, Shell spokesperson told OE.
Shell made its final investment decision on the Appomattox floating production system development in 2015. Located in the Mississippi Canyon area in 7200ft (2195m) of water, the Appomattox development will initially produce from the Appomattox and Vicksburg fields. Earlier this year, Shell awarded Oceaneering the contract to design, fabricate and install ancillary flowline hardware at the field.
Appomattox is one of three field development projects under construction in the deepwater Gulf. The other two are Kaikias and Coulomb Phase 2. The company has said its deepwater business is a growth priority for the company. By 2020, Shell expects its deepwater production to grow to over 900,000 boe/d from already discovered, established reservoirs.
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