Shell Offshore Inc., a subsidiary of the UK-based energy giant Shell, has given the green light to a phased three-well program aimed at enhancing production at a development in the U.S. Gulf of Mexico (GoM). This final investment decision (FID) marks the initiation of a strategic campaign to deliver three wells, with the primary goal of augmenting production at the Perdido spar, situated approximately 200 miles south of Galveston, Texas, in waters around 8,000 feet deep.

Upon completion of the campaign in April 2025, the wells are projected to yield up to 22,000 barrels of oil equivalent per day (boe/d) at peak rates. Perdido, in operation since 2010, currently boasts a production capacity of 125 kboe/d at its peak.

The drilling operations will be conducted in the Great White field, where Shell Offshore serves as the operator with a 33.34% interest. Chevron and BP Exploration & Production Inc. hold stakes of 33.33% each in the asset.

Rich Howe, Shell’s Executive Vice President for Deep Water, emphasized, “Shell is the leading operator in the U.S. Gulf of Mexico, and we continue to find ways to build on that position. By expanding our Perdido development, we continue to unlock the greatest value from this exceptional resource.”

Shell Offshore holds a 35% interest in the Perdido Regional Host, Chevron U.S.A. Inc. has a 37.5% stake, 3C Perdido Holdings LLC holds 26.5%, and BP Exploration & Production has a 1% interest. The Perdido offshore development comprises a spar platform serving as a production hub for three deep-water fields: Great White, Silvertip, and Tobago.

This investment underscores Shell’s enduring commitment to the U.S. Gulf of Mexico, known for having among the lowest greenhouse gas intensity globally in oil production. In a recent development, Shell secured full ownership of a deepwater field in the U.S. Gulf of Mexico, while progress was made on its Gulf of Mexico oil project, with a new floating production unit arriving at its destination. The company continues to strengthen its presence in this vital region, aligning with its long-term strategic goals.