Royal Dutch Shell plc has made its final investment decision (FID) to advance its Appomattox deepwater development in the Gulf of Mexico. This decision authorizes the construction and installation of Shell’s eighth and largest floating platform in the Gulf of Mexico.
The Appomattox development will initially produce from the Appomattox and Vicksburg fields, with average peak production estimated to reach approximately 175,000 barrels of oil equivalent (boe) per day. The platform and the Appomattox and Vicksburg fields will be owned by Shell (79%) and Nexen Petroleum Offshore USA Inc. (21%), a wholly owned subsidiary of CNOOC Ltd.
During design work for Appomattox, Shell reduced the total project cost by 20% through supply chain savings, design improvements, and by reducing the number of wells required for the development. This includes advancements from previous four-column hosts, such as the Olympus tension-leg platform, as well as ensuring a high degree of design maturity before construction. With these and other cost reductions, the go-forward project breakeven price is estimated to be around $55 per barrel Brent equivalent.