First production from Gulf of Mexico Stones field

Shell commenced production from the Stones development in the Gulf of Mexico last month. The Stones project is expected to produce around 50,000 boe/d when fully ramped up at the end of 2017.

The host facility for what is claimed to be the world’s deepest offshore oil and gas development is a floating production, storage and offloading (FPSO) vessel. It is the thirteenth FPSO in Shell’s global deepwater portfolio and produces through subsea infrastructure beneath 9,500 feet (2,900 metres) of water.

‘Stones is the latest example of our leadership, capability, and knowledge which are key to profitably developing our global deepwater resources,’ said Andy Brown, Upstream Director, Royal Dutch Shell. ‘Our growing expertise in using such technologies in innovative ways will help us unlock more deepwater resources around the world.’

Stones, which is 100% owned and operated by Shell, is the company’s second producing field from the Lower Tertiary geologic frontier in the Gulf of Mexico, following the start-up of Perdido in 2010.

The project demonstrates the company’s commitment to realising significant cost savings through innovation. It features a more cost-effective well design, which requires fewer materials and lowers installation costs; this is expected to deliver up to $1bn reduction in well costs once all the producers are completed.

The FPSO is also specially designed to operate safely during storms. In the event of a severe storm or hurricane, it can disconnect and sail away from the field. Once the weather event has passed, the vessel will return and safely resume production.

Shell’s global deepwater business is a growth priority for the company and currently produces 600,000 boe/d. Deepwater production is expected to increase to more than 900,000 boe/d by the early 2020s from already discovered, established reservoirs.

Three other Shell-operated projects are currently under construction or undergoing pre-production commissioning – Coulomb Phase 2 and Appomattox in the Gulf of Mexico, and Malikai in Malaysia.

Earlier this year Shell unveiled plans to sell 100% of its record title interest in Gulf of Mexico Green Canyon blocks 114, 158, 202 and 248, referred to as the Brutus/Glider assets, to EnVen Energy Corporation.  In line with Shell’s global divestment plans, this transaction includes $425mn in cash. The transaction is expected to close this month.

The Brutus/Glider assets include the Brutus tension leg platform (TLP), the Glider subsea production system, and the oil and gas lateral pipelines used to evacuate the production from the TLP. The assets have a combined current production estimate of approximately 25,000 boe/d.