Shell starts production at Silvertip Phase 3 in US Gulf

Shell Offshore Inc. has started production at Phase 3 of the Silvertip project in the U.S. Gulf of Mexico, adding two wells to the Shell-operated Perdido spar, the company announced Oct. 28.

The wells, in the Silvertip Frio reservoir, are expected to produce up to 6,000 bbls of oil equivalent (boe) per day at peak rates.

Shell Offshore, a subsidiary of Shell plc, is the largest producing leaseholder in the U.S. Gulf, referred to as the Gulf of of America following the 2025 renaming by executive order.

Sell holds 40% of the Silvertip Frio reservoir and is the operator. Chevron U.S.A. holds the remaining 60%.

The wells are tied into existing subsea infrastructure. Shell estimates recoverable resources for the phase at 17 million boe, classified as 2P under the Society of Petroleum Engineers’ Resource Classification System. The peak production and recoverable volume figures are 100% gross.

“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 the Gulf of America 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.”

Perdido is a production spar in Alaminos Canyon, about 200 miles south of Galveston, Texas, in roughly 8,000' of water. Shell operates the Perdido Regional Host and holds a 35% working interest. Chevron U.S.A. holds 37.5%, 3C Perdido Holdings holds 26.5%, and BP holds 1%.

The Perdido spar began production in 2010 and serves fields in the Great White, Silvertip, and Tobago areas. Silvertip is among the fields tied back to the host.