In an official media release, energy company Royal Dutch Shell recently confirmed its intent to increase energy production efforts in the Gulf of Mexico with a new floating platform. Though the sites that the new platform will draw from, Appomattox and Vicksburg, have been known to Shell for years, this platform will derive new results from the same sites.
During development, this platform was designed to require fewer wells than previously thought. Specifically, this project will include 15 producing wells, five water injection wells and six drill centers.
According to the source, average peak production is expected to yield 175,00 barrels of oil equivalent per day. The decision parallels other developments listed by the source, including investing in a pipeline that will transport oil from the Appomattox site, which has been designed to connect to other sites as it is adapted in the future.
Shell Upstream Americas director Marvin Odum said that this new effort will continue the previous work the company has done on similar projects in the region.
"Appomattox opens up more production growth for us in the Gulf of Mexico, where our production last year averaged about 225,000 BOE per day, and this development will be profitable for decades to come," he said. "With its competitive cost and design, Appomattox is next in our series of deep-water successes." The Maritime Executive reports that this field alone could increase Shell's production rate by at least 60 percent when compared to last year's numbers.
Oilfield insurance is an important consideration for project managers who have to prepare for the possibility of serious losses during operations.