Shell: invests in Whale in Gulf of Mexico

(CercleFinance.com) - Shell has announced that its Shell Offshore subsidiary has approved the final investment decision (FID) for Whale, Shell's second deepwater development in the US Gulf of Mexico to use a streamlined, cost-effective design.


Shell expects an internal rate of return of around 25% and plans to install energy efficient turbines and compression systems, saying that this development will be the last addition to its portfolio in the Gulf of Mexico, where the group says that its production presents greenhouse gas emissions that are amongst the lowest in the world for oil production.

Ultimately, Whale (a project owned by Shell Offshore Inc - operator (60% share) and Chevron USA (40% share), is expected to reach peak production of around 100,000 barrels of oil equivalent per day (boe/d). Recoverable resources are estimated at 490 million boe, with production set to begin in 2024.


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