Shell’s Whale project in the deepwater Gulf of Mexico (GOM) has started production, achieving first oil 7 1/2 years after discovery, the supermajor and project partner Chevron announced 9 January.
Located in Alaminos Canyon block 773, Whale is about 10 miles away from Shell’s operated Silvertip field in the Perdido corridor. Last month, Shell reached final investment decision (FID) on a two-well subsea tieback from Silvertip to Perdido.
The Whale production semisubmersible in 8,600 ft water depth is largely a replicant of Shell’s Vito platform, which started production in February 2023. Shell said Whale features energy-efficient gas turbines and compression systems that mean it will operate with around 30% lower greenhouse gas intensity over its life cycle than Vito.
The Vito platform, in about 4,000 ft water depth in the Mississippi Canyon area of the Gulf, represents the template for Shell’s “design one, build two” model. The breakeven price for the minimal floater design for Vito was less than $35/bbl, according to Shell.
Whale replicates 99% of the hull design and 80% of the topsides from Vito, which reached FID in 2018. In announcing sanction for the 20,000-psi Sparta project in the Garden Banks area of the GOM in December 2023, Shell called its approach for Sparta an “enhanced replication of Vito and Whale.” The Sparta production semi, expected onstream in 2028, will replicate about 95% of Whale’s hull and 85% of Whale’s topsides.
Shell reached FID on Whale in July 2021, and Seatrium delivered the Whale production semi in October 2023. Whale is expected to produce 100,000 BOE/D at peak production with 15 wells tied back to the platform. Shell said Whale has an estimated recoverable resource volume of 480 million BOE.
While Whale was originally expected to begin production by the end of 2024, it still went on-stream about 7 1/2 years after discovery. Shell noted the cycle time for Whale included a 1-year delay in the project reaching FID due to cash-preservation efforts during the COVID-19 pandemic.
Shell operates Whale with 60% interest on behalf of partner Chevron with 40% interest. Shell operates Vito with 63.11% interest on behalf of partner Equinor with 36.89% interest. Shell operates Sparta, which was formerly known as North Platte and discovered by Cobalt Energy and Total in 2012, with 51% interest on behalf of partner Equinor with 49% interest.
