In a bid to boost production from the Perdido platform that is operational for the Phase 3 Silvertip Development in the US Gulf of Mexico, Shell has onboarded Subsea7 for extensive engineering, procurement, construction, and installation (EPCI) work that will run 3,000 metres deep into the Alaminos Canyon.
Subsea7's services will also include the installation of a production flowline and related subsea infrastructure. The company is currently tackling the project management and engineering of this contract at their office in Houston, Texas.
"This new award strengthens our diverse portfolio of deepwater projects in the Gulf of Mexico. We look forward to continuing our collaboration with Shell," said Craig Broussard, Senior Vice President for Subsea7 Gulf of Mexico.
Prioritising tieback opportunities
Owned by Shell (40%) – who is also the operator – and Chevron (60%), the wells within the Silvertip Frio reservoir can achieve a combined yield of nearly 6,000 barrels of oil equivalent per day. A final investment decision has hence been reached to advance production optimisation across two wells that comprise the Phase 3 Silvertip project. The companies are aiming first production 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 US 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."
