Shell Offshore Inc. has announced the start of production at Phase 3 of the Silvertip project in the Alaminos Canyon area, which is now delivering production from two new wells to the Perdido spar.

The Silvertip field, specifically the Silvertip Frio reservoir targeted by Phase 3, is located in Alaminos Canyon block 815, in roughly 9,000-plus feet of water. It has employed a subsea tieback into existing infrastructure that feeds the Perdido spar, which itself sits in nearby Alaminos Canyon block 857, about 200 miles south of Galveston, Texas, in approximately 8,000 feet of water).

This tieback fits Shell’s strategy of maximizing existing deepwater hubs with efficient subsea tiebacks rather than building new host facilities.

The two new wells are expected to collectively produce up to 6,000 barrels of oil equivalent per day (boe/d) at peak rates.

“By adding new production through existing Perdido infrastructure, we can safely deliver more value and optimize the life of a world-class asset,” said Colette Hirstius, Shell’s Executive Vice President for GoA and Shell USA President. “This is further proof of how we are making the most out of our assets in the GoA, helping to provide secure energy from one of the most competitive deep-water basins in the world.”

The current estimated recoverable resource volumes of Phase 3 Silvertip are 17 million boe. The estimate of resource volumes is currently classified as 2P under the Society of Petroleum Engineers’ Resource Classification System.

Perdido has been in production since 2010 and is one of the deepest spar facilities in the world.

Tieback strategy

Recent US Gulf of Mexico subsea tiebacks have become a dominant development model. Operators are favoring them to add production faster and at lower cost by connecting new wells to existing hubs instead of building new platforms.

Other Gulf operators are advancing similar tieback plans. Murphy has sanctioned or is advancing smaller tiebacks (e.g., String Music, Banjo, Cello) to Delta House. LLOG has additional packages such as Buckskin South. Shell continues to market capacity on its ~13 host facilities for third-party or its own tiebacks.

Industry commentary has highlighted the advantages: shorter cycle times, lower capex, reduced emissions from using existing infrastructure, and the ability to monetize smaller or more distant discoveries. Many 2024–2026 startups in the basin have followed this pattern.

Tiebacks typically deliver lower-cost barrels with faster payback than greenfield hubs. Chevron’s Ballymore and bp’s Argos/Atlantis expansions were cited as strong examples of schedule and cost performance.

Common distances are a few miles out to 20-plus miles; the industry is pushing longer step-outs (toward 50–100 km) with better flow assurance, subsea boosting, and HIPPS systems.

The growth of the tieback strategy is also enabling older platforms to remain in service. Mature facilities such as Perdido, Olympus/Mars, Blind Faith, Atlantis, and Who Dat are being extended well into the 2030s. New hubs, such as bp’s Tiber-Guadalupe, targeting 2030, are also being designed with future tieback capacity in mind.

Multiple additional tiebacks are expected through 2026–2028. The model supports both major operators maximizing existing assets and independents (Beacon, LLOG, etc.) bringing discoveries online with lower risk. Shell’s Silvertip Phase 3 announcement fits squarely into this ongoing pattern of infrastructure-led, capital-efficient growth in the deepwater Gulf.