Shell has announced that it has made the final investment decision for Vito, a deep-water development in the U.S. Gulf of Mexico.
It is located over four blocks in the Mississippi Canyon area of the Gulf of Mexico, the Vito development will consist of eight subsea wells with deep (18,000 feet) in-well gas lift.
Going ahead with FDI means the construction and fabrication of a new, simplified host design and subsea infrastructure can begin.
Shell said it is going with a forward-looking, break-even price associated from FID estimated to be less than US$35.
Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day, which represents a significant contribution to Shell's continued growth in the Gulf of Mexico. The development currently has an estimated, recoverable resource of 300 million boe.
“With a lower-cost developmental approach, the Vito project is a very competitive and attractive opportunity industry-wide,” said Andy Brown, Shell Upstream Director.
In 2015, Shell began to redesign the Vito project, reducing cost estimates by more than 70 per cent from the original concept. Vito’s cost savings are due to the simplified design, in addition to working collaboratively with vendors in a variety of areas including well design and completions, subsea, contracting, and topsides design.