Shell to boost oil production from U.S. Gulf of Mexico with Great White project approval

December 13, 2023

(WO) − Shell Offshore Inc., a subsidiary of Shell plc, announced the Final Investment Decision (FID) for a phased campaign to deliver three wells in the Great White unit designed to boost oil production at the Shell-operated Perdido spar in the U.S. Gulf of Mexico (GoM).

Perdido platform (Source: Shell)

After completion of this campaign in April 2025, these wells collectively are expected to produce up to 22,000 boed at peak rates.

This investment underscores Shell’s long-term commitment to the U.S. 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.

Perdido, a production spar in the U.S. Gulf of Mexico, began production in 2010. It is located approximately 200 miles south of Galveston, Texas in about 8,000 ft of water.

The wells will be drilled in the Great White unit, where Shell Offshore Inc. is operator with 33.34% WI, with Chevron U.S.A. Inc. holding 33.33% WI, BP Exploration & Production Inc. holding 33.33% WI.

This phased campaign includes three wells which combined are expected to produce up to 22,00 boed at peak rates. Perdido’s production capacity is 125,000 boed at peak rates.

The reference to Shell’s U.S. Gulf of Mexico production being among the lowest GHG intensity in the world is a comparison among other IOGP oil-and gas-producing members.

“Shell is the leading operator in the U.S. Gulf of Mexico, and we continue to find ways to build on that position,” said Rich Howe, Shell’s Executive Vice President for Deep Water. “By expanding our Perdido development, we continue to unlock the greatest value from this exceptional resource.”


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