Appomattox starts up ahead of schedule, under budget

May 23, 2019

Offshore staff

HOUSTONShell Offshore Inc. has started production at the Appomattox field in the deepwater Gulf of Mexico.

Discovered in 2010, Appomattox is about 80 mi (129 km) southeast of Louisiana in about 7,400 ft (2,255 m). It is the first commercial discovery now brought into production in the Norphlet formation in the deepwater Gulf of Mexico.

The development initially will produce from the Appomattox and Vicksburg fields and will consist of a semisubmersible production platform, a subsea system featuring six drill centers, 15 producing wells, and five water injection wells. Expected peak production is estimated at 175,000 boe/d.

Since taking the final investment decision in July 2015, Appomattox has realized cost reductions of more than 40% through optimized development planning, better designs and fabrication, and expert drilling execution, according to Shell.

“That Appomattox was safely brought online ahead of schedule and far under budget is a testament to our ongoing commitment to drive down costs through efficiency improvements during execution,” said Andy Brown, Upstream Director, Royal Dutch Shell. “Appomattox creates a core long-term hub for Shell in the Norphlet through which we can tieback several already discovered fields as well as future discoveries.”

Appomattox is a joint venture between Shell (79%, operator) and CNOOC Petroleum Offshore U.S.A. Inc., a subsidiary of CNOOC Ltd. (21%).

Yuan Guangyu, CEO of CNOOC Ltd., said: “… Appomattox will become a new growth driver to our overseas production.”

The Mattox pipeline, a 90-mi (145-km), 24-in. system with a 300,000-b/d capacity, will move the produced crude oil from Appomattox westward to the Proteus pipeline system and then onshore. The pipeline was completed ahead of schedule and under budget, Shell said.

Mattox is jointly owned by Shell GOM Pipeline Co. LLC and CNOOC Petroleum Sales U.S.A. Inc., an indirectly wholly-owned subsidiary of CNOOC Ltd.