Shell confirms strong momentum in GoM

Royal Dutch Shell reconfirmed strong momentum in its businesses in the Americas, reporting that production in the region could reach 1 MMboe/d in 2014, an increase of some 40% on current levels.

Offshore staff

HOUSTON -- Royal Dutch Shell reconfirmed strong momentum in its businesses in the Americas, reporting that production in the region could reach 1 MMboe/d in 2014, an increase of some 40% on current levels.

Shell has invested over $60 billion in Upstream Americas since 2004 including development of new fields, new exploration leases, and acquisitions of undeveloped resources positions. Upstream Americas asset sales proceeds are expected to exceed $2 billion in 2010-11, part of Shell’s worldwide plans for $7-8 billion of disposals.

The outlook for deep water remains positive, despite the current drilling moratorium in the Gulf of Mexico. Shell is moving ahead with a 100,000 boe/d tension leg platform in the Gulf called Mars B, which is part of the company’s post-2014 growth potential.

Exploration performance continues apace, with Gulf of Mexico drilling activities in 2009 and 2010 adding over 500 MMboe for the company, including the 2010 Appomattox discovery, which has total resources in excess of 250 million MMboe. These finds are part of a portfolio with more than 250,000 boe/d of production potential for Shell in the Gulf of Mexico. The exploration outlook is positive, with a substantial inventory of new prospects, including plans to drill in Alaska in 2011, the company says.

“Our portfolio development over recent years has built a strong platform for the future, and Upstream Americas is entering a phase of strong and profitable growth,” says Marvin Odum, Shell’s director of upstream Americas. “We expect to invest around $10 billion per year in this region to 2014, when oil & gas production could reach 1 MMboe/d.”

09/30/2010

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