[US GOM] Whale

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escveritas
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[US GOM] Whale

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Sembcorp Marine Secures FPU Construction and Integration Contract for Shell’s Whale Field Development in Gulf of Mexico
Whale FPU will take advantage of synergies from ongoing Shell Vito FPU project secured last year


Topside and hull will be delivered in 2022 from Tuas Boulevard Yard as a single integrated structure, facilitated by the yard’s 30,000-tonne lifting capacity

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Singapore, Nov 1, 2019 – Sembcorp Marine Rigs & Floaters Pte. Ltd. has won a contract from Shell Offshore Inc. to build and integrate the topside and hull of a Floating Production Unit (FPU) for the Whale field in the Gulf of Mexico.

The agreement precedes a final investment decision for the full Whale project, expected to be made next year by Shell. It paves the way for the Whale FPU to move ahead and take advantage of synergies from the ongoing Shell Vito FPU, currently under construction at Sembcorp Marine’s Tuas Boulevard Yard.

The Whale FPU comprises a topside module and a four-column semi-submersible floating hull, with a combined weight of 25,000 tonnes. Slated for completion in 2022, it will operate in the Alaminos Canyon Block 772.

“We are very grateful to Shell for recognising our yard capabilities and entrusting us with the Whale FPU project, which comes after our successful bid for the Shell Vito FPU last year,” Sembcorp Marine Head of Rigs & Floaters William Gu said.

Like the Vito FPU, the entire Whale FPU topside will be integrated and commissioned on ground level at Tuas Boulevard Yard in order to minimise work-at-height risks for the workers. The completed FPU topside will then be raised and attached to a 51-metre tall hull, using a pair of gantry cranes that can lift up to 30,000 tonnes.

“With our state-of-the-art 30,000-tonne cranes at Tuas Boulevard Yard, we can assemble the Whale FPU topside into a mega-block and combine it with the hull efficiently in one single lift,” Mr Gu said, adding that the yard’s enormous lifting capacity is becoming a winning differentiator for Sembcorp Marine’s project execution.

Other than the Whale and Vito FPUs, Sembcorp Marine’s project track record in the Gulf of Mexico includes previous deliveries of eight semi-submersible drilling rigs and one semi-submersible hull.

The Whale FPU construction and integration project is not expected to have a material impact on the net tangible assets per share and earnings per share of Sembcorp Marine for the year ending Dec 31, 2019.
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Re: [US GOM] Whale

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Shell delays US deepwater GoM Whale FID to 2021

Shell has delayed a final investment decision (FID) on the Whale oil field in the deepwater US Gulf of Mexico from this year to 2021. The firm last month cut its 2020 capital expenditure (capex) budget in response to the sharp drop in oil prices.

Work is continuing on the Whale project, Shell said today, without providing further details.

Shell described Whale as "one of its largest finds in the US Gulf in the past decade" when it announced the discovery two years ago. The firm has put Whale's planned peak production at 100,000 b/d of oil equivalent (boe/d). Shell operates the project with a 60pc stake. Chevron holds the remaining 40pc.

Shell said on 23 March that its 2020 capex will be cut to $20bn or below, from its previous budget of around $25bn. Since then, the company has pulled out of the Lake Charles LNG export project in Louisiana, US, and delayed a FID on Australia's Crux gas field.

Whale is located within tie-back distance of Shell's Perdido spar platform, although the firm has made it clear that Whale is big enough to justify its own platform.

By Konstantin Rozhnov
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Re: [US GOM] Whale

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Shell Invests in the Whale Development in the Gulf of Mexico

Jul 26, 2021

Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc, today announces the final investment decision (FID) for Whale, a deep-water development in the U.S. Gulf of Mexico that features a 99% replicated hull and an 80% replication of the topsides from our Vito project.

“Whale is the latest demonstration of our focus on simplification, replication and capital projects with shorter cycle times to drive greater value from our advantaged positions,” said Wael Sawan, Shell Upstream Director. “We are building on more than 40 years of deep-water expertise to deliver competitive projects that yield high-margin barrels so that we are able to meet the energy demands of today while generating the cash required to help fund the development of the energy of the future.”
    Whale will be the second Shell-operated deep-water development in the Gulf of Mexico to employ a simplified, cost-efficient host design. With this development approach, Shell anticipates an internal rate of return estimated to be greater than 25%. Our Whale development will feature energy-efficient gas turbines and compression systems. This development will be the latest addition to our Gulf of Mexico portfolio where our production is among the lowest greenhouse gas (GHG) intensity in the world for producing oil.

    The Whale development, owned by Shell Offshore Inc. (60% operator) and Chevron U.S.A. Inc. (40%), is expected to reach peak production of approximately 100,000 barrels of oil equivalent per day (boe/d) and currently has an estimated, recoverable resource volume of 490 million boe. Whale will be Shell’s 12th deep-water host in the Gulf of Mexico and is currently scheduled to begin production in 2024.

    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.

    Notes to editors
    • The Whale production facility is in the Alaminos Canyon Block 773 and is adjacent to the Shell-operated Silvertip field, approximately 10 miles from the Shell-operated Perdido platform and approximately 200 miles southwest of Houston.
    • Discovered in 2017, Whale will feature a semi-submersible production host in more than 8,600 feet of water with 15 oil producing wells.
      Whale’s design closely replicates Vito, a four-column semi-submersible host facility located in the greater Mars Corridor. Vito is scheduled to begin production in 2022.
    • By leveraging the engineering, construction and supply chain of Vito, Whale is expected to achieve first oil 7.5 years after discovery.
    • The cycle time includes the impact from COVID cash-preservation efforts that delayed project FID by one year.
    • The estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.
    • The reference to our U.S. 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 U.S. Gulf of Mexico.
    • In addition to operations in Brazil and the U.S. Gulf of Mexico, Shell’s deep-water portfolio includes frontier exploration opportunities in Mexico, Suriname, Argentina and West Africa.
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