Shell Makes Oil Discovery in the Gulf of Mexico

Published at 05:00PM - 28/07/16

Shell announced today it has made a new exploration discovery in the deep waters of the US Gulf of Mexico.

The supermajor found initial estimated recoverable resources of more than 125 million barrels of oil equivalent (boe) at the Fort Sumter well.

“The Fort Sumter discovery builds upon Shell’s global deepwater leadership. Its  proximity to our nearby discoveries in the area, and to highly prospective acreage to the southeast, makes Fort Sumter particularly significant,” Shell Exploration Executive Vice President, Ceri Powell, said.

Shell Makes Oil Discovery in the Gulf of Mexico

Further appraisal drilling and planned wells in adjacent structures could considerably increase recoverable potential near the Fort Sumter well, the company informed.

The well was safely drilled in the Mississippi Canyon Block 566, which is located approximately 73 miles offshore southeast of New Orleans.

The well has a water depth of 7,062 feet and was drilled to a total vertical drilling depth of 28,016 feet, according to Shell’s reported measurements.

Additionally, an appraisal sidetrack well was later drilled to a depth of 29,200 feet.

Fort Sumter Oil Find Prove Gulf of Mexico Potential

This discovery by Shell follows a string of exploration successes in the US Gulf of Mexico over recent years.

The company’s material discovery builds upon a recent Norphlet exploration success at the Appomattox, Vicksburg and Rydberg discoveries, which bring the total resources added by exploration in the region since 2010 to around 1.3 billion boe.

“These successes demonstrate there is still running room in the producing basins of our heartlands where large, high-value discoveries have the potential to further strengthen our deep water competitiveness,” the executive added.

Shell’s global deep water business, which the company said would be a key focus area throughout the year, currently produces 600,000 boe per day, which production expected to increase to 900,000 boe per day by 2020, using already discovered, established reservoirs.