THE HAGUE, The Netherlands,
May 8, 2013 /PRNewswire/ --
Royal Dutch Shell plc (Shell)
(NYSE:RDS.A) (NYSE:RDS.B) today announces a final investment
decision in the Stones ultra-deepwater project, a Gulf of Mexico oil and gas development
expected to host the deepest production facility in the world. This
decision sets in motion the construction and fabrication of a
floating production, storage, and offloading (FPSO) vessel and
subsea infrastructure. The development will start with two subsea
production wells tied back to the FPSO vessel, followed later by
six additional production wells. This first phase of development is
expected to have annual peak production of 50,000 boe/d from more
than 250 million boe of recoverable resources. The Stones field has
significant upside potential and is estimated to contain over 2
billion boe of oil in place.
"This important investment demonstrates our ongoing commitment
to usher in the next generation of deepwater developments, which
will deliver more production growth in the Americas," said
John Hollowell, Executive Vice
President for Deepwater, Shell Upstream Americas. "We will continue
our leadership in safe, innovative deepwater operations to help
meet the growing demand for energy in the US."
The Stones field is located in 9,500 feet (2,896 meters) of
water, approximately 200 miles (320 kilometers) southwest of
New Orleans, Louisiana, and was
discovered in 2005. The project encompasses eight US Federal Outer
Continental Shelf lease blocks in the Gulf of Mexico's Lower Tertiary geologic
trend. Shell has been one of the pioneers in the Lower Tertiary,
establishing first production in the play from its Perdido
Development.
An FPSO design was selected to safely develop and produce this
ultra-deepwater discovery, while addressing the relative lack of
infrastructure, seabed complexity, and unique reservoir properties.
With an FPSO, tankers will transport oil from the Stones FPSO to US
refineries, and gas will be transported by pipeline.
The launch of the Stones development is a key milestone as Shell
continues to grow deepwater exploration and development in the
Gulf of Mexico, having made
significant progress recently on the Mars-B development project
with the arrival of the Olympus tension leg platform. Shell is also
in the concept selection phase for the Appomattox and Vito
discoveries in the Gulf of
Mexico.
Shell holds 100% interest and will operate the Stones
development.
EDITOR'S NOTES:
- A turret with a disconnectable buoy will allow the FPSO vessel
to weathervane in normal conditions and to disconnect from the well
system and sail to safe areas in the event of adverse weather
conditions.
- A lazy wave riser configuration will be used, consisting of a
steel catenary riser with buoyancy added with an arch bend to
decouple the FPSO dynamic motions and subsequently increase riser
performance.
- A combination of polyester rope and chain comprises the
ultra-deepwater mooring system holding the FPSO on station.
- Multiphase seafloor pumping is planned for use in a later phase
to pump oil and gas from the seabed to the FPSO, increasing
recoverable volumes and production rates.
Royal Dutch
Shell plc
Royal Dutch Shell plc is
incorporated in England and
Wales, has its headquarters in
The Hague and is listed on the
London, Amsterdam and New
York stock exchanges. Shell companies have operations
in more than 70 countries and territories with businesses including
oil and gas exploration and production; production and marketing of
liquefied natural gas and gas to liquids; manufacturing, marketing
and shipping of oil products and chemicals and renewable energy
projects. For further information, visit http://www.shell.com.
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SOURCE Royal Dutch Shell plc