USA: Offshore Project Shell Announces Investment in Deep-Water Development
Shell Offshore announced the final investment decision for Vito, a deep-water development in the US Gulf of Mexico. This decision sets in motion the construction and fabrication of a new, simplified host design and subsea infrastructure.
Den Haag/The Netherlands — Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day, which according to the company represents a significant contribution to their continued growth in the Gulf of Mexico.
Vito's forward-looking, break-even price is estimated to be less than $ 35 per barrel. The development currently has an estimated, recoverable resource of 300 million boe.
In 2015, the oil company began to redesign the Vito project, reducing cost estimates by more than 70 % 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 % operator) and Statoil USA E&P Inc. (36.89 %); the field is located beneath more than 1,200 m of water, approximately 240 km southeast of New Orleans.