Shell and partners Equinor, Chevron and Repsol announced a significant discovery at the Blacktip prospect in the deepwater U.S. Gulf of Mexico, the companies announced on Thursday.
Shell holds a 52.37% interest and acts as operator in the prospect which is co-owned by Chevron with a 20% share. Norway's Equinor holds 19.12% stake and Spain's Repsol has an 8.5% share.
The Blacktip exploration well has encountered more than 400 feet (122 meters) of net oil pay with good reservoir and fluid characteristics in the Alaminos Canyon Block 380, approximately 250 miles (400 kilometers) south of Houston.
"We are very pleased with this discovery which confirms the potential in the deepwater Gulf of Mexico and underpins Equinor’s strategy to exploit prolific basins and deepen in core areas,” said Bjorn Inge Braathen, senior vice president for exploration in North America.
Drilling is still ongoing to deepen the well and further assess the structure’s potential.
"We await further results from the well and look forward to continue the collaboration with the operator and co-venturers to assess the full potential of the discovery and evaluate options for development," Braathen noted.
By Murat Temizer