Shell Offshore Inc (Shell), a subsidiary of Royal Dutch Shell plc has announced the final investment decision for Vito, a deep-waterdevelopment in US Gulf of Mexico. With a forward-looking, break-even price estimated to be less than $35 per barrel. This decision sets in motion the construction and fabrication of a new, simplified host design and subsea infrastructure.
Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day, which represents a significant contribution to our continued growth in the Gulf of Mexico. The development currently has an estimated, recoverable resource of 300 million boe.
In 2015, Shell began to redesign the Vito project, reducing cost estimates by more than 70 percent from the original concept. Vito’s cost savings are due to the simplified design, in addition to working collaboratively with vendors in a variety of areas including well design and completions, subsea, contracting, and topsides design.
The Vito development is owned by Shell Offshore Inc (63.11 percent operator) and Statoil USA E&P Inc (36.89 percent); the field is located beneath more than 4,000 feet of water, approximately 150-miles southeast of New Orleans.
Shell Offshore Inc (Shell), a subsidiary of Royal Dutch Shell plc has announced the final investment decision for Vito, a deep-waterdevelopment in US Gulf of Mexico. With a forward-looking, break-even price estimated to be less than $35 per barrel. This decision sets in motion the construction and fabrication of a new, simplified host design and subsea infrastructure.
Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day, which represents a significant contribution to our continued growth in the Gulf of Mexico. The development currently has an estimated, recoverable resource of 300 million boe.
In 2015, Shell began to redesign the Vito project, reducing cost estimates by more than 70 percent from the original concept. Vito’s cost savings are due to the simplified design, in addition to working collaboratively with vendors in a variety of areas including well design and completions, subsea, contracting, and topsides design.
The Vito development is owned by Shell Offshore Inc (63.11 percent operator) and Statoil USA E&P Inc (36.89 percent); the field is located beneath more than 4,000 feet of water, approximately 150-miles southeast of New Orleans.
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