Shell begins production at Stones in the Gulf of Mexico

Shell begins production at Stones in the Gulf of Mexico

Shell (LSE: RDSB) has announced that production has started from the Stones development in the Gulf of Mexico, which is expected to produce around 50,000 barrels of oil per day by the end of 2017.

The facility for the world’s deepest offshore oil and gas project is a floating production, storage and offloading (FPSO) vessel.

It’s the 13th FPSO in Shell’s global deep-water portfolio and generates through subsea infrastructure beneath 2,900m of water.

Andy Brown, Shell’s upstream director said: “Stones is the latest example of our leadership, capability, and knowledge which are key to profitably developing our global deep-water resources.

“Our growing expertise in using such technologies in innovative ways will help us unlock more deep-water resources around the world.”

Stones is Shell’s second producing field from the Lower Tertiary geologic frontier in the Gulf of Mexico, following the establishment of Perdido in 2010.

The project features a more cost-effective well design, which requires less materials and lowers installation costs. It is expected to deliver up to US$1 billion reduction in well costs once all the producers are finished.

Three additional Shell projects are currently under construction or in pre-production commissioning: Coulomb Phase 2 and Appomattox in the Gulf of Mexico and Malikai in Malaysia.

@RGNOnline