Shell's Whale will be a big gas producer

Shell's US Gulf of Mexico Whale oilfield is also to be a big gas producer, with gross peak output of 200mn ft³/day, the Anglo-Dutch major told NGW. Described as a 100,000 barrels of oil equivalent/day field when sanctioned July 26, the project is expected to generate returns above 25% over its lifetime.

Whale’s design closely replicates Vito, a four-column semi-submersible host facility in the greater Mars Corridor and will benefit from its engineering, construction and supply chain. Vito is scheduled to begin production in 2022, Shell said,

“Whale is the latest demonstration of our focus on simplification, replication and capital projects with shorter cycle times to drive greater value from our advantaged positions,” said Shell, which splits the equity 60-40 with US major Chevron.

Whale will be the second Shell-operated deep-water development in the Gulf of Mexico to employ a simplified, cost-efficient host design. The development will feature energy-efficient gas turbines and compression systems. Shell's Gulf of Mexico production is among the lowest greenhouse gas intensity in the world for producing oil, it said, explaining that this was in comparison with other IOGP members.

Whale has an estimated recoverable resource volume of 490mn boe. Whale will be Shell’s 12th deep-water host in the Gulf of Mexico and is scheduled to begin production in 2024.