Shell Begins Production at Gulf of Mexico’s Whale Field
Shell has commenced commercial production at the Whale oil field in the Gulf of Mexico, targeting peak output of 100,000 barrels per day. This milestone marks a significant step in Shell’s broader strategy to achieve a combined peak production of over 500,000 barrels of oil equivalent daily from projects initiated between 2023 and 2025.
Zoë Yujnovich, Shell’s director of integrated gas and upstream, emphasized the importance of the project, stating, “This will make a significant contribution to our commitment to bringing key projects online.”
Shell holds a 60% operating stake in the Whale field, with Chevron owning the remaining 40%. For Chevron, the field is a pivotal part of its plan to achieve a production target of 300,000 net barrels of oil equivalent per day by 2026. The Whale field is estimated to hold recoverable reserves of approximately 480 million barrels of oil equivalent.
Discovered in 2017, the Whale field’s production was delayed as Shell and Chevron carefully evaluated the final investment decision, especially during the demand slump caused by the pandemic lockdowns three years after the discovery.
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While Shell celebrated the Whale field’s progress, the company faced setbacks in Africa. Shell announced this week that its offshore oil discovery in Namibia’s PEL39 block could not currently be confirmed for commercial development. The Namibian project, which cost approximately $400 million, was initially viewed as a key driver for the country’s ambitions to become a major oil producer.
Despite this, Shell expressed optimism, stating, “The extensive data collected shows that there remain opportunities. Together with our partners, we are continuing to explore potential commercial pathways to development while actively looking for further exploration opportunities in Namibia.”
The contrasting developments highlight Shell’s ongoing efforts to balance global energy production goals with exploration challenges.
Source: Oilprice.com
