Shell starts production at Silvertip Phase 3 in deepwater US Gulf

Shell Offshore, a subsidiary of UK-headquartered energy major Shell, has commenced production from Phase 3 of the Silvertip deepwater development in the US Gulf of Mexico, according to reporting by Offshore Energy.

The project development concept centres on a two-well subsea tie-back into the company’s operated Perdido spar platform. Drilling into the Silvertip Frio reservoir, the two wells are projected to deliver up to 6,000 barrels of oil equivalent per day (boe/d) at peak production rates. Shell serves as the lead for the Silvertip project with a 40% working interest, while Chevron holds the remaining 60% equity stake.

Under the Society of Petroleum Engineers’ Resource Classification System, current estimated recoverable resource volumes for Phase 3 are classified as 2P reserves and stand at 17 million boe. The development scheme relies entirely on tying the newly completed wells directly into existing subsea infrastructure, directing output into the Perdido host facility without the necessity of installing additional standalone surface units.

Infrastructure and Perdido hub operations

The Perdido Regional Host facility is situated offshore within the Alaminos Canyon protraction area, approximately 200 miles south of Galveston, Texas, moored in water depths of about 8,000 feet. The floating spar platform serves as a central deepwater production hub for three distinct offshore fields: Silvertip, Great White, and Tobago.

Equity distribution in the Perdido Regional Host differs from the Silvertip reservoir partnership. Shell operates the Perdido spar with a 35% working interest. Chevron holds the largest equity share at 37.5%, while 3C Perdido Holdings controls a 26.5% interest and BP holds the remaining 1%.

Colette Hirstius, Shell’s Executive Vice President for the Gulf of Mexico and Shell USA President, emphasised the commercial logic of subsea integration. She noted: "By adding new production through existing Perdido infrastructure, we can safely deliver more value and optimize the life of a world-class asset." Hirstius added: "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."

Regional portfolio adjustments

The startup of Silvertip Phase 3 comes against the backdrop of wider asset realignment by Shell across the deepwater Gulf of Mexico. The energy group recently completed the sale of its 50% non-operated working interest in the Na Kika platform and its associated producing fields.

In the same transaction package, Shell also finalised the complete divestment of its 100% owned Coulomb subsea tie-back. The divested assets were acquired by a subsidiary of Talos Energy together with an affiliate of Ridgewood Energy.

The Silvertip Phase 3 startup underscores an operational emphasis on leveraging high-capacity existing infrastructure to capture near-field resources. By directing capital into short-cycle, high-margin subsea tie-backs, the Perdido partnership aims to maximise field recovery and maintain throughput across established deepwater installations in the Gulf.