Shell fuels Olympus tie-back in the Gulf of Mexico

The oil company Shell has started production from a deep-sea connection to its production center Olympus, thereby opening up further added value in the US Gulf of Mexico.

Shell announced the start of production power napan underwater development with an estimated peak production of 20,000 barrels of oil equivalent per day (boe/d), on Tuesday.

PowerNap underwater tieback; Source: shell

PowerNap is located in the US Gulf of Mexico and is a liaison to the Shell operated company Production center of Olympus – with three production wells produced by a single isolated 19 mile flowline and high pressure gas lift capability – in the productive Mars Corridor. Shell operates Olympus with a 71.5 percent working interest, while BP holds the remaining 28.5 percent.

Zoe YujnovichShell’s upstream director, remarked: “Shell has been manufacturing in the Mars Corridor for more than 25 years, and we continue to find ways to unlock even more value there. PowerNap strengthens a core position upstream that is critical to delivering our Powering Progress strategy and enabling us to deliver the stable and secure energy resources the world needs today and into the future.”

The energy giant discovered PowerNap – located in the south-central Mississippi Canyon region about 150 miles from New Orleans – in about 4,000 feet of water in 2014 and has been 100 percent under development by Shell since then. The final investment decision (FID) for the project was made in 2019.

The Company confirmed that PowerNap production will be transported to market via the Mars pipeline operated by Shell Pipeline Company LP and jointly owned by Shell Midstream Partners, LP (71.5 percent) and BP Midstream Partners LP ( 28.5 percent). .

power nap;  Courtesy of Shell
power nap; Courtesy of Shell

Shell stated that its production is in the US Gulf of Mexico to the lowest intensity greenhouse gases (GHG). in the world for oil production. Regarding its energy transition plans, the company first announced its goal to become a zero-emissions energy company by 2050 or earlier in April 2020.

Less than a month after a Dutch court ordered Shell to deepen its carbon emissions cuts in May 2021 in what it says is the first of its kind, the company vowed to adopt some of them “brave but measured” Steps to accelerate the reduction of carbon emissions from its operations. However, the energy company set a new goal in October 2021 to halve its Scope 1 and Scope 2 emissions by 2030 compared to 2016.

Turning to Shell’s recent activities elsewhere, it’s worth noting that the company is preparing to remove an FPSO and associated subsea infrastructure from the Knarr fieldlocated in the North Sea off the coast of Norway.

Additionally, earlier this month, this oil and gas major released an amended Environmental Statement (ES) for its jackdaw field Development in Britain’s North Sea which the country’s regulators rejected last year.

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