Shell Offshore announced on October 28 that production has started at Phase 3 of its Silvertip development, adding wells tied to existing infrastructure at the Perdido facility offshore Texas.
The two wells in the Silvertip Frio reservoir are expected to produce a combined peak of up to 6,000 barrels of oil equivalent daily, according to Shell's announcement. That is a projected peak rate, rather than a statement of current daily output.
Shell operates the reservoir with a 40% interest; Chevron holds 60%. The company estimated recoverable resources for the phase at 17 million barrels of oil equivalent. Both the resource estimate and projected peak production represent the entire project, rather than Shell's ownership share.
Perdido sits approximately 200 miles south of Galveston in about 8,000 feet of water. The new phase uses two wells connected to its existing subsea infrastructure.
Shell described the project as a way to increase production and extend the value of an operating offshore asset. Resource and production estimates remain company forecasts.
Sources: Shell Offshore Silvertip Phase 3 announcement.