Shell Starts Up Production From Gulf Of Mexico Subsea Tieback

Oil supermajor Shell has announced the start of production at PowerNap, a subsea development in the U.S. Gulf of Mexico with an estimated peak production of 20,000 barrels of oil equivalent per day (boe/d).

The PowerNap development is a tie-back to the Shell-operated Olympus production hub in the prolific Mars Corridor.

“Shell has been producing in the Mars Corridor for more than 25 years, and we continue to find ways to unlock even more value there,” said Zoe Yujnovich, Shell Upstream Director.

“PowerNap strengthens a core Upstream position that is critical to achieving our Powering Progress strategy and ensuring we can supply the stable, secure energy resources the world needs today and in the future,” Yujnovich added.

According to the company, Shell is the leading deep-water operator in the U.S. Gulf of Mexico where its production is among the lowest greenhouse gas (GHG) intensity in the world for producing oil.

Shell’s global deep-water portfolio represents two core positions in its Upstream business with prolific basins in the United States and Brazil, along with an exciting frontier exploration portfolio in Mexico, Suriname, Argentina, and West Africa.

“Shell designs and operates its deep-water projects to be competitive and economically resilient, and since 2015, has reduced unit development costs by 50 percent and unit operating costs by 40 percent,” the company explained.

As for PowerNap, Shell discovered the field in 2014. It is 100 percent developed by the supermajor, located in the south-central Mississippi Canyon area approximately 150 miles from New Orleans in about 4,200 feet of water. The final investment decision for the project was taken in 2019.

PowerNap’s subsea tie-back to the Olympus platform includes three production wells produced through a single insulated 19-mile flowline and high-pressure gas lift capability. Shell operates Olympus with a 71.5 percent working interest while BP controls the remaining 28.5 percent.

Production from the tie-back will be transported to the market via the Mars pipeline, which is operated by the Shell Pipeline Company and co-owned by Shell Midstream Partners and BP Midstream Partners. Shell and BP own the pipeline in the same percentage they own Olympus, 71.5 and 28.5, respectively.

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