Shell Plc and Chevron Corp. are taking a final investment decision on Phase 3 of the Silvertip project in the Gulf of Mexico (GoM), subsidiary Shell Offshore Inc. announced Dec. 12.

The project will deliver two wells in the Shell-operated Silvertip Frio Reservoir (Shell, 40% ownership; Chevron, 60%) tied to existing subsea infrastructure.

The project will boost production at the GoM Perdido spar located in the Alaminos Canyon approximately 200 miles offshore in approximately 8,000 ft of water.

Current Phase 3 estimated recoverable resource volumes are 17 MMboe. First production is expected in 2026 and each well will produce up to 6,000 boe/d at peak rates. 

"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," said Rich Howe, Shell's executive vice president for deepwater.

Shell is operator of the Perdido Regional Host and holds 35% working interest (WI). Chevron U.S.A. Inc. holds 37.5% WI, 3C Perdido Holdings holds 26.5% and BP has 1% WI.

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