Shell reaches FID for Phase 3 Silvertip project in U.S. Gulf of Mexico

Shell Offshore Inc., a subsidiary of Shell plc (Shell), announced a Final Investment Decision (FID) on the Phase 3 Silvertip project, which will deliver two wells to boost production at the Shell-operated Perdido spar in the U.S. Gulf of Mexico (GoM). These wells, located in the Silvertip Frio reservoir (Shell – 40%, operator; Chevron 60%), are expected to collectively produce up to 6,000 boed at peak rates. First production is expected in 2026.

"This investment at Perdido is another example of our focus on high margin, lower carbon intensity barrels," said Rich Howe, Shell's Executive Vice President for Deep Water. "As the largest operator in the U.S. Gulf of Mexico, we prioritize opportunities nearby our existing assets in these advantaged corridors, where we are well-positioned to develop shorter-cycle, high-value tieback opportunities."

The Phase 3 Silvertip project reinforces Shell's long-term commitment to the United States, in particular to the Gulf of Mexico, where production is essential to ensuring a reliable and secure supply of energy. Additionally, production in the U.S. Gulf of Mexico has among the lowest greenhouse gas (GHG) intensity in the world for producing oil.

Project background

Perdido is a production spar in the U.S. Gulf of Mexico, located within Alaminos Canyon, approximately 200 miles offshore south of Galveston, Texas in about 8,000 feet of water. The development concept for Phase 3 Silvertip includes two wells, tied into existing subsea infrastructure. Shell is operator of the Perdido Regional Host (PRH) and has 35% Working Interest (WI), with Chevron U.S.A. Inc. holding 37.5% WI, 3C Perdido Holdings 26.5% and BP 1% WI.