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Shell begins production at Appomattox field in Gulf of Mexico

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Oilfield Technology,

As reported by Reuters, Shell has started producing oil and gas at its Appomattox deepwater platform in the Gulf of Mexico, one of the largest projects launched in the basin in recent years.

The company said the floating production system will produce around 175 000 boe/d of oil and gas.

Appomattox, which is located in US waters, was completed ahead of its expected startup in 3Q19 and at around 40% below its initial planned cost in 2015, Shell said. It is the first producing field in the Norphlet area and “just the beginning” of activity there, Shell said.

Shell holds 79% of the project while Chinese state oil and gas producer CNOOC Ltd holds the remaining 21%.

The start of production at Appomattox, the Lula North field offshore Brazil and the Prelude LNG vessel off Australia earlier this year is expected to add $5 billion to Shell’s cash flow by 2020, analysts at Jefferies said.

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