Take a closer look at the Appomattox hull as it prepares to “set sail” on its long and impressive journey:

Key facts

Location: Gulf of Mexico, 130 kilometres (80 miles) off Louisiana

Depth: 2,255 metres (7,400 feet)

Interests: Shell (79% operator), Nexen Petroleum Offshore USA Inc. (21%)

Fields: Appomattox, Vicksburg

Average peak annual production: 175,000 barrels of oil equivalent

Project development

Building on Shell’s history of leadership in the Gulf of Mexico, the Appomattox development is a cornerstone of our global Deep Water strategy that will drive safe, competitive, and profitable production growth for years to come. 

The Appomattox development will initially produce from the Appomattox and Vicksburg fields, with first oil by the end of the decade and average peak production estimated to reach approximately 175,000 barrels of oil equivalent per day (boe/d).

With the recent completion and arrival of the hull in Texas, and construction of the host platform and fabrication of subsea infrastructure currently underway, Shell’s Appomattox project is more than 65% complete. Shell has maintained a strong safety and quality focus for Appomattox, while also striving to further reduce project costs. Since making our final investment decision (FID) in July 2015, Shell has achieved more than 25% cost savings, in addition to approximately 20% cost reduction on the project prior to FID. These cost reductions have been the result of efficient execution, significant well cost reductions, and lower market costs.

Strategic, competitive and innovative

With Shell’s industry-leading position in the deep water, our business is on a growth trajectory, including expanding production opportunities in this area of our Gulf of Mexico heartland. Currently, we are the only operator in the Gulf of Mexico with commercial deep-water discoveries in the Norphlet formation, including Appomattox, Vicksburg, Rydberg and Ft. Sumter.

Appomattox now has a current Break-Even Price (BEP) of less than $50 per barrel, making this development an attractive and competitive investment in Shell’s global portfolio. Shell continues with a strong focus on reducing the BEP further, aggressively pursuing further cost reductions and developing an advantaged portfolio with potential future subsea tie-backs.

As a leading, competitive and innovative project in deep water, Appomattox will continue this legacy to safely, responsibly, and efficiently unlock energy resources from this industry-first, frontier development.

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