Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc, announced that the company will set in motion the construction and fabrication of a new, simplified host design and subsea infrastructure in Vito, a deep-water development in the U.S. Gulf of Mexico.
According to the announcement, Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day, which, according to the company "represents a significant contribution to our continued growth in the Gulf of Mexico."
"The development currently has estimated, recoverable resources of 300 million boe," the company stated.
In 2015, Shell began to redesign the Vito project, reducing cost estimates by more than 70 percent from the original concept.
Shell Offshore Inc. owns a 63.11 percent stake as operator in the Vito development while Statoil U.S.A. E&P Inc. holds a 36.89 percent share.
The field is located over 4,000 feet underwater, approximately 150-miles southeast of New Orleans.
The statement underlined that with 40-years of Shell leadership in deep water development, Vito will be Shell’s 11th deep-water host in the Gulf of Mexico and is currently scheduled to begin producing oil in 2021.
By Gulsen Cagatay