Shell Offshore Inc. has taken FID on the Phase 3 Silvertip subsea development in the US Gulf of Mexico.
This will involve drilling two wells to recover resources of 17 MMboe. These will boost production at the Shell-operated Perdido spar in the Alaminos Canyon, 200 miles south of Galveston, Texas, in 8,000 ft water depth.
The new wells, in the Silvertip Frio reservoir (Shell, 40%; Chevron, 60%), will be tied into existing subsea infrastructure and should deliver up to 6,000 boe/d at peak rates. First production should follow in 2026.
Subsea7 has EPCI responsibilities for the associated new production flowline and tie-ins, with work already under way at the company’s offices in Houston. Offshore work will take place in 2026.
Shell as operator of the Perdido Regional Host has a 35% interest, in partnership with Chevron U.S.A. (37.5%), 3C Perdido Holdings (26.5%) and BP (1%).
Offshore Saudi Arabia, Aramco has awarded Subsea7 new work under the parties’ long-term agreement.
The workscope covers decommissioning of existing subsea facilities and EPCI of a new pipeline and subsea equipment at the Abu Safah field.
Subsea7 will manage the project from its office in Al Khobar, Saudi Arabia, with support from branches in Dubai and Singapore. Offshore operations should take place in 2026.
