Shell reaches FID on waterflood project at Gulf of Mexico Vito field

(WO) — Shell Offshore Inc., a subsidiary of Shell plc, has approved a Final Investment Decision (FID) for a waterflood project at its Vito asset in the Gulf of Mexico.

The project involves injecting water into the reservoir to increase oil extraction and is set to begin in 2027. This initiative is expected to significantly enhance production capacity at the Vito field.

"Over time, we’ve seen the benefits of waterflood as we look to fill our hubs in the Gulf of Mexico,” said Zoë Yujnovich, Shell integrated gas and upstream director. “This investment will deliver additional high-margin, lower-carbon barrels from our advantaged Upstream business while maximizing our potential from Vito.”

The waterflood process includes injecting water to push oil towards production wells and re-pressurize the reservoir, following the drilling of three pre-production wells.

As a leading deep-water operator in the U.S. Gulf of Mexico, Shell boasts one of the lowest greenhouse gas intensities in global oil production. The Vito field was discovered in July 2009, situated over 4,000 feet underwater, approximately 75 miles south of Venice, LA. The original design for the Vito host was revised in 2015, resulting in an 80% reduction in CO2 emissions and over a 70% cost reduction.

Shell and its partner Equinor achieved first oil from the Vito field in February 2023. The upcoming waterflood project is anticipated to increase recoverable resources by 60 million barrels of oil equivalent (boe). Shell has also set a goal to stabilize production at 1.4 million barrels per day of liquids through 2030.