Shell Offshore, a subsidiary of the UK-headquartered energy giant Shell, has taken the final investment decision (FID) on a waterflood project at its U.S. Gulf of Mexico asset, which will enable water to be injected into the reservoir formation to displace additional oil.
The Vito field, discovered in July 2009, is located in more than 4,000 feet of water approximately 75 miles south of Venice, LA, 150 miles southeast of New Orleans and 10 miles south of the Shell-operated Mars TLP. The FID for the development was made in April 2018 by Shell as the operator (63.11%) and Equinor (36.89%), with the first oil achieved in February 2023 .
Shell explains that waterflood is a method of secondary recovery where the injected water physically sweeps the displaced oil to adjacent production wells while re-pressurizing the reservoir. The three water injection wells were all drilled as pre-producers.
According to the company, the Vito waterflood project will increase recoverable resource volume by 60 million boe. The estimate of resource volumes is currently classified as 2P and 2C under the Society of Petroleum Engineers’ Resource Classification System. The process is expected to begin in 2027.
“Over time, we’ve seen the benefits of waterflood as we look to fill our hubs in the Gulf of Mexico,” said Zoë Yujnovich , Shell Integrated Gas and Upstream Director. “ This investment will deliver additional high-margin, lower-carbon barrels from our advantaged Upstream business while maximizing our potential from Vito.”
Vito employs a simplified and cost-efficient host design that was rescoped in 2015, resulting in about an 80% reduction in lifetime CO2 emissions and more than 70% reduction in costs versus the original concept.
Shell said it expected to see production stabilize at 1.4 million barrels per day of liquids by 2030.