Shell, the UK-based energy giant, has given the green light to its ambitious two-well drilling campaign scheduled for 2024. The company has successfully concluded site survey operations associated with this exploration program in the North Sea, marking significant progress in its strategic initiatives.

An official update on the ongoing developments comes from Shell's partner, Deltic Energy. The collaborative efforts are focused on preparing for the drilling of Shell's Selene and Pensacola wells, both slated for 2024. Following a positive well investment decision for Selene in July 2022, the North Sea Transition Authority (NSTA) granted approval, propelling the P2437 license into the next operational phase. Shell has taken over the operatorship of the license, aligning with its strategic move towards the drilling phase.

Deltic reports the completion of geotechnical site investigation works at the preferred surface location for the Selene exploration well. The vessel has been demobilized from the site, and the findings will be integrated into the operational drilling plan. The Selene prospect, one of the largest unapprised structures in the Leman Sandstone fairway of the Southern Gas Basin, is anticipated to hold gross P50 prospective resources of 318 BCF of gas, with a geological chance of success standing at 70%.

Moreover, the joint venture led by Shell, as confirmed by Deltic, has finalized the positive well investment decision for license P2252. The approval of the 2024 work program and budget clears the way for the drilling of the Pensacola appraisal well in late 2024. Pensacola, dubbed a "transformational gas discovery" by Shell in February 2023, is estimated to have an ultimate recovery of 302 BCF of gas, making it the largest natural gas discovery in the North Sea in over a decade.

As part of its recent strategic moves, Shell initiated the divestment of its interest in a significant gas discovery in the Norwegian Sea to Equinor. Simultaneously, the acquisition of the remaining stake in a U.S. Gulf of Mexico asset allows Shell to consolidate ownership in a deepwater field developed as a subsea tie-back to the Ursa production hub.

Adding to its recent activities, Shell Brasil Petróleo Ltda, a subsidiary of the UK oil major, secured 29 blocks in the Pelotas Basin during the 4th cycle of the permanent concession offer held by the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) in Rio de Janeiro on December 13. This strategic move strengthens Shell's position in Brazil, where it now holds a stake in 68 oil and gas contracts.

Furthermore, Shell, alongside two other key players, recently inked contracts for four offshore blocks in Uruguay, signaling the company's commitment to exploring and exploiting oil resources off the South American coast.

In parallel with these strategic moves, Shell has given the go-ahead for a phased offshore drilling program, aiming to enhance production at a development project in the U.S. Gulf of Mexico. The company remains actively engaged in pursuing additional hydrocarbon resources to bolster its global portfolio.