Shell in the Gulf of Mexico

Shell Exploration & Production Company (SEPCo) is responsible for offshore Exploration, Development and Production in the Gulf of Mexico (GoM).

Shell has been operating in the Gulf of Mexico for five decades, and these operations provide more than 80% of Shell’s US oil and gas production. 

Shell is a leading producer of hydrocarbons and a large leaseholder in the Gulf of Mexico.  Shell-operated GoM total gross production averages 510,000 barrels of oil equivalent per day.  Shell holds an interest in 424 federal offshore leases, of which 344 are in the deep water. 

Shell exhibits its commitment to the GoM by participating in lease sales, most notably during the October 2007 Lease Sale 205.  Shell spent more than $500 million and came away with 67 lease blocks, expanding its leading position in the Eastern Gulf of Mexico, as well as adding to its already substantial portfolio in the Lower Tertiary and Miocene trends.

Shell is a leader in moving into the deep and ultra deep water, setting numerous records:

2006 – Shell announces it will develop three fields via a Perdido Regional Development host spar.  Moored in about 8,000 feet of water, it will be the deepest spar production facility in the world.

2003 – Production begins at NaKika floating development & production system in 6,350 feet of water

2001 – Brutus TLP installed in 2,985 feet of water

1998 – Ursa TLP installed in 3,800 feet of water, yet another record

1997 – Ram Powell TLP installed in a water depth of 3,214 feet, surpassing Mars TLP

1996 – Mars TLP installed in 2,940 feet of water, setting a water depth record

1993 – Auger TLP established a GoM water depth record when it was installed in 2,860 feet of water

1988 – Bullwinkle - world’s tallest conventional fixed platform in 1,350 feet of water

Shell also has pursued the utilization of subsea production systems.  Since 1994, in the GoM, Shell has operated and produced from 20 subsea developments and 56 subsea wells.  At the end of November 2006, Shell surpassed one billion barrels of oil equivalent in subsea production from the Gulf of Mexico (Total Gross production from Shell-operated GoM deepwater subsea properties).

Shell also is involved in partner-operated deepwater projects, including Nakika, Conger, Marlin, Holstein, King, Morpeth and Hickory.

Shell’s Yellowhammer Plant, near Coden, Alabama, is jointly owned by Shell with 64%, and Marubeni Oil and Gas with 36%.  The plant processes sour gas from the Shell/Marubeni Fairway Field and other 3rd party fields.  The Fairway Field is located about 17 miles southeast of the Yellowhammer Plant.

Workforce Development
The Robert Training and Conference Center (RTCC) began its third decade of service to Shell and the oil and gas industry in August 2007.  It is presently equipped with 22 classrooms to handle all areas of Exploration and Production and Health, Safety & Environmental operations training, team meetings, conferences and workshops.  It also includes on-site lodging, full galley, an indoor heated pool (used for Helicopter Underwater Escape Training, or “HUET”, training), an instrument/electrical lab, drilling rig simulator, production equipment exhibit shed, control room and a recreation room.

Shell is expanding RTCC to meet present and future needs.  The facility is being tripled in size with the addition of a new 21,000 square foot Training and Conference Building and a new 33,000 square foot Residential Building, presently scheduled for completion in August 2008.  Shell has partnered with Louisiana State University and Louisiana Economic Development to create the Center for Petroleum Workforce Development to help meet the workforce development needs of Shell and the oil and gas industry.

2005 Hurricane Recovery Efforts
The Mars Tension Leg Platform (TLP) Recovery Team accomplished several technical and innovation feats in bringing the facility back on line ahead of schedule in May 2006.  Among the first-ever accomplishments were the lift of the 1,000-ton damaged rig substructure, the repairs to both of the Mars product export pipelines in 2,700 feet of water and the mooring of the Safe Scandinavia flotel in 3,000 foot water depth. 

• In 2007, the Mars TLP Recovery Team was the recipient of the prestigious Offshore Energy Achievement Project of the Year Award and the National Ocean Industries Association Safety in Seas Award.  Additionally, SEPCo received the following in 2007 from the Minerals Management Service: 
  National Offshore Safety Award for Excellence for High Activity Operator
• Minerals Revenue Stewardship Award
• National Safe Operations and Accurate Reporting Award

Shell employees were able to return to One Shell Square in New Orleans in January 2006.  Shell has donated millions of dollars and thousands of volunteer man-hours to numerous Gulf Coast rebuilding efforts.  For instance, in support of the Louisiana fishing and seafood industry’s recovery, Shell sponsored the pilot for the industry’s “Back to the Dock” recovery program.  Shell also donated three ice houses to assist fishermen in southern Louisiana.

In another show of support for New Orleans, in 2006, Shell became the first-ever Presenting Sponsor of the New Orleans Jazz and Heritage Festival and has extended the Sponsorship through 2010. 

In 2008, the National Oceanic and Atmospheric Administration and Shell signed a cooperative agreement to place meteorological and oceanographic observation sensors on seven Shell oil platforms in the Gulf of Mexico.  Once installed, the equipment will become a vital component of the Integrated Ocean Observing System, providing valuable data for use in hurricane research, forecasting, and coastal resource management.

Last update:  July 2008