Shell Offshore Inc., a subsidiary of Shell, announced a Final Investment Decision (FID) on the Phase 3 Silvertip project, which will deliver two wells to boost production at the Shell-operated Perdido spar in the U.S. Gulf of Mexico (GoM).
These wells, located in the Silvertip Frio reservoir (Shell – 40%, operator; Chevron 60%), are expected to collectively produce up to 6,000 barrels of oil equivalent per day (boe/d) at peak rates. First production is expected in 2026.
"This investment at Perdido is another example of our focus on high margin, lower carbon intensity barrels," said Rich Howe, Shell's Executive Vice President for Deep Water. "As the largest operator in the U.S. Gulf of Mexico, we prioritize opportunities nearby our existing assets in these advantaged corridors, where we are well-positioned to develop shorter-cycle, high value tieback opportunities."
The Phase 3 Silvertip project reinforces Shell's long-term commitment to the United States, in particular to the Gulf of Mexico, where production is essential to ensuring a reliable and secure supply of energy. Additionally, production in the U.S. Gulf of Mexico has among the lowest greenhouse gas (GHG) intensity in the world for producing oil.
