[US GOM] Vito

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escveritas
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[US GOM] Vito

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Shell invests in the Vito development in the Gulf of Mexico

Apr 24, 2018

Shell Offshore Inc. (Shell), a subsidiary of Royal Dutch Shell plc, today announces the final investment decision for Vito, a deep-water development in the U.S. Gulf of Mexico with a forward-looking, break-even price estimated to be less than $35 per barrel. This decision sets in motion the construction and fabrication of a new, simplified host design and subsea infrastructure.

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Vito will be Shell’s 11th deep-water host in the Gulf of Mexico. 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 4,000 feet of water, approximately 150-miles southeast of New Orleans.

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Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day, which represents a significant contribution to our continued growth in the Gulf of Mexico. The development currently has an estimated, recoverable resource of 300 million boe.

“With a lower-cost developmental approach, the Vito project is a very competitive and attractive opportunity industry-wide,” said Andy Brown, Shell Upstream Director. “Our ability to advance this world-class resource is a testament to the skill and ingenuity of our development, engineering and drilling teams.”

In 2015, Shell 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 4,000 feet of water, approximately 150-miles southeast of New Orleans.

Editor’s Note:
  • Located over four blocks in the Mississippi Canyon area of the Gulf of Mexico, the Vito development will consist of eight subsea wells with deep (18,000 feet) in-well gas lift.
  • The forward-looking breakeven price presented above is calculated based on all forward-looking costs associated from FID. Accordingly, this typically excludes exploration and appraisal costs, lease bonuses, exploration seismic and exploration team overhead costs. The forward-looking breakeven price is calculated based on our estimate of resources volumes that are currently classified as 2p and 2c under the Society of Petroleum Engineers’ Resource Classification System. As this project is expected to be multi-decade producing, the less than $35 per barrel projection will not be reflected either in earnings or cash flow in the next five years.
  • The estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.
  • With 40-years of Shell leadership in deep water, Vito will be Shell’s 11th deep-water host in the Gulf of Mexico and is currently scheduled to begin producing oil in 2021. With global production progressing to more than 900,000 boe per day, Shell has deep-water projects and opportunities in the U.S., Brazil, Nigeria, Malaysia, and Mexico.
escveritas
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Re: [US GOM] Vito

Unread post by escveritas »

In April 2018 Shell took the final investment decision to develop the Vito deep-water project in the US Gulf of Mexico. Vito will be Shell’s 11th deep-water project in the area.

Key facts

Location: Gulf of Mexico, 240 kilometres (150 miles) southeast of New Orleans

Depth: 1,219 metres (4,000 feet)

Interests: Shell (63% operator) and Statoil USA E&P Inc. (37%)

Fields: Vito

Production: An estimated 100,000 barrels of oil equivalent (boe) per day at peak production

Project overview

In April 2018 Shell announced the final investment decision for Vito, a deep-water development in the US Gulf of Mexico with a forward looking break-even price estimated to be less than $35 per barrel.

Building on Shell’s history of leadership in the Gulf of Mexico, Vito will be Shell’s 11th deep-water project in the area. It is currently scheduled to begin producing oil in 2021.

Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day, which represents a significant contribution to Shell’s continued growth in the Gulf of Mexico. The development currently has an estimated, recoverable resource of 300 million boe.

Strategic design

In 2015, Shell 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.

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Re: [US GOM] Vito

Unread post by escveritas »



Sembcorp Marine Ltd has delivered Vito RPF (Regional Processing Platform) to Shell for its Vito deep-water development project in the US Gulf of Mexico with a forward looking break-even price estimated to be less than $35 per barrel.

Vito will be Shell’s 11th deep-water project in the area. It was originally scheduled to begin producing oil in 2021.

Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day, which represents a significant contribution to Shell’s continued growth in the Gulf of Mexico. The development currently has an estimated, recoverable resource of 300 million boe.
Sembcorp Marine is currently undertaking the construction of a second FPU project for Shell, involving the fabrication and integration of the FPU topsides, living quarters and hull, for the Whale development located in the United States Gulf of Mexico.
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Re: [US GOM] Vito

Unread post by escveritas »

Shell starts production at Vito in US Gulf of Mexico

16 FEB 2023

Shell Offshore Inc., a subsidiary of Shell plc (Shell), announced that production has started at the Shell-operated Vito floating production facility in the US Gulf of Mexico (GoM). With an estimated peak production of 100,000 barrels of oil equivalent per day, Vito is the company’s first deep-water platform in the GoM to employ a simplified, cost-efficient host design.

“Vito is an excellent example of how we are approaching our projects to meet the energy demands of today and tomorrow, while remaining resilient as we work toward achieving net zero emissions by 2050,” said Zoe Yujnovich, Shell’s Upstream Director, adding, “Building on more than 40 years of deep-water expertise, projects like Vito enable us to generate greater value from the GoM, where our production has amongst the lowest greenhouse gas intensity in the world for producing oil.”

The Vito development is owned by Shell Offshore Inc. (63.11% operator) and Equinor (36.89%). In 2015, the original host design was rescoped and simplified, resulting in a reduction of approximately 80% in CO2 emissions over the lifetime of the facility as well as a cost reduction of more than 70% from the original host concept.

Vito also serves as the design standard for our Whale project that will feature a 99% replication of the Vito hull and 80% of Vito’s topsides.

Shell’s Powering Progress strategy to thrive through the energy transition includes increasing investment in lower-carbon energy solutions, while continuing to pursue the most energy-efficient and highest-return Upstream investments.

Fun Facts
  • Originally discovered in 2009, the Vito field spans four Outer Continental Shelf (OCS) blocks in the Mississippi Canyon and is located at a depth of more than 4,000 feet (1,220 metres) of water. The host is located approximately 150 miles (241 kilometres) southeast of New Orleans and 10 miles (16 kilometres) south of the Shell-operated Mars TLP.
  • Shell announced a final investment decision (FID) on the Vito project in April 2018.
  • Vito is a four-column semi-submersible host facility with eight subsea wells (31,000 feet or 9,400 metres) with deep (18,000 feet or 5,500 metres) in-well, gas lift, and associated subsea flowlines and equipment.
  • Vito will produce into Shell Midstream’s Mars Pipeline system.
  • The Vito field includes leases subject to the Gulf of Mexico Energy Security Act of 2006, which share lease revenues with Gulf producing states and the Land & Water Conservation Fund for coastal restoration projects.
  • Current estimated recoverable resource volume of the primary Vito development is 290 million boe. The estimate of resources volumes is currently classified as 2p and 2c under the Society of Petroleum Engineers’ Resource Classification System.
  • The estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.
  • Vito is Shell’s 13th deep-water host in the Gulf of Mexico.
  • Shell reached an FID on Whale in 2021 and is currently scheduled to begin production in 2024.
  • The reference to our US Gulf of Mexico production being among the lowest GHG intensity in the world is a comparison among other IOGP oil-and gas-producing members.
  • Shell is the leading operator in the US Gulf of Mexico for oil and gas production.
  • In addition to operations in Brazil and the US Gulf of Mexico, Shell’s deep-water portfolio includes our Argentina Shales organization and frontier exploration opportunities in Mexico, Suriname, Sao Tome & Principe, Argentina and Namibia.
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