Shell and Chevron cheer first oil as Whale song enriches energy security courtship in US Gulf of Mexico

Shell Offshore, a subsidiary of the UK-based Shell, and its partner, Chevron, a Texas-headquartered energy giant, have boosted their oil and gas arsenal in the U.S. Gulf of Mexico by starting production from a deepwater project more than seven years after the original hydrocarbon discovery.

Following a hydrocarbon discovery in 2017, Shell made a final investment decision in July 2021 for the Whale deepwater development in the Perdido Corridor. Seatrium, former Sembcorp Marine, was tasked with the construction of the Whale floating production unit (FPU), encompassing the fabrication and integration of the FPU topsides, living quarters, and hull. The Whale development is owned by Shell Offshore (60%, operator) and Chevron (40%).

The Singapore-based company delivered the completed FPU Whale, comprising a topside module and a four-column semi-submersible floating hull, in October 2023. The integration of the FPU topside and hull in one single lift was enabled by the Goliath twin cranes with a combined 30,000-ton lifting capacity and a 100-meter hook height. Boskalis’ Boka Vanguard vessel brought the 25,000-ton FPU Whale to Ingleside, United States.

Both Shell and Chevron have confirmed the production start-up at the FPU Whale that replicates the simplified, cost-efficient host design of the Vito platform, which began production in early 2023. The Whale project, part of the energy giants’ Gulf of Mexico portfolio, features a 99% replicated hull and an 80% replication of the topsides from the Vito project.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, commented: “Whale demonstrates our focus on driving more value with less emissions from our Upstream business as we deliver the energy people need today. It will make a significant contribution to our commitment to bring projects online, with a total peak production of more than 500,000 barrels of oil equivalent per day from 2023 through 2025.”

Whale, described as the most efficient of Shell’s oil and gas platforms in the Gulf of Mexico, has joined the oil major’s producing deepwater portfolio of assets in the U.S., which is expected to help deliver the secure energy the world needs today. With an estimated peak production of 100,000 barrels of oil equivalent per day (boe/d), the FPU currently has an estimated recoverable resource volume of 480 million boe.

According to the operator, Whale features energy-efficient gas turbines and compression systems, operating with around 30% lower greenhouse gas (GHG) intensity over its life cycle than Vito in the greater Mars Corridor, enhancing the firm’s Gulf of Mexico portfolio, where oil production’s GHG intensity is perceived to be among the lowest in the world. This project is anticipated to deliver lower emissions, reduced costs, and higher returns.

Located in the Alaminos Canyon Block 773, approximately 200 miles (320 kilometers) southwest of Houston, and adjacent to the Shell-operated Silvertip field, about 10 miles (16 kilometers) from the oil major’s operated Perdido platform, the Whale field features a semi-submersible production host in more than 8,600 feet (2,600 meters) of water with 15 wells to be tied back to the host via subsea infrastructure.

Bruce Niemeyer, President of Chevron Americas Exploration & Production, highlighted: “Production from Whale brings Chevron another step closer to reaching 300,000 net barrels of oil equivalent per day in the U.S. Gulf of Mexico by 2026. As a leading leaseholder in the Gulf, where we produce some of the lowest carbon intensity oil and natural gas in the world, Chevron is well positioned to continue growing affordable, reliable production in the U.S. while delivering higher returns and cash flow.”

Shell underlined that it was able to achieve the first oil from Whale 7.5 years after discovery by leveraging the engineering and construction techniques used for Vito, as well as its supply chain. This timeframe includes a one-year delay to the final investment decision following the firm’s cash preservation strategy during the Covid-19 pandemic.

The first oil production from Whale follows Chevron’s first production from its industry-first high-pressure Anchor asset and water injection operations at two projects to boost production at the company’s Jack/St. Malo and Tahiti facilities in the Gulf.

Several projects are under development in the Gulf of Mexico, including one operated by LLOG Exploration, which recently disclosed it was nearing the first oil production milestone, thanks to FPU refurbishment progress.