Shell invests in water injection at Gulf of Mexico field to boost production

Shell Offshore Inc., a subsidiary of Shell plc, has made a strategic decision to enhance oil recovery at its Vito asset in the US Gulf of Mexico by approving a final investment decision (FID) on a waterflood project. This project, set to commence in 2027, aims to significantly increase production capacity at the Vito field through the implementation of a secondary recovery technique known as waterflooding.

Waterflooding is a widely used method in the oil and gas industry for secondary recovery of oil from reservoirs. It involves injecting water into the reservoir formation to push additional oil towards production wells, effectively displacing the oil and increasing the overall recovery rate. This process not only helps in boosting production but also in maintaining reservoir pressure, which is critical for efficient extraction.

At the Vito field, Shell plans to use this technique to enhance oil production significantly. The project includes the use of three water injection wells, which were drilled as pre-producers. By re-pressurising the reservoir and sweeping oil towards adjacent production wells, Shell expects to increase the recoverable resource volume by 60 million barrels of oil equivalent (boe).

The decision to proceed with the waterflood project at Vito is part of Shell's broader strategy to maximise the potential of its assets in the Gulf of Mexico. The region has been a key area of focus for Shell, where it is the leading deep-water operator. The Gulf of Mexico production assets are among the lowest in greenhouse gas (GHG) intensity globally, aligning with Shell's commitment to sustainable energy production.

Zoë Yujnovich, Shell's Integrated Gas and Upstream Director, highlighted the benefits of this project: "Over time, we’ve seen the benefits of waterflood as we look to fill our hubs in the Gulf of Mexico. This investment will deliver additional high-margin, lower-carbon barrels from our advantaged Upstream business while maximising our potential from Vito."

The Vito field, discovered in July 2009, is located in more than 4,000 feet of water, approximately 75 miles south of Venice, Louisiana. Since its discovery, the field has undergone significant development, with the original host design being simplified and rescoped in 2015. This redesign not only reduced the facility’s CO2 emissions by approximately 80% over its lifetime but also slashed costs by over 70% compared to the original concept.

The FID for the initial development of the Vito field was announced in April 2018, with first oil being achieved in February 2023. The waterflood project is expected to further boost the field’s output, contributing to Shell’s goal of stabilising production at 1.4 million barrels per day of liquids by 2030, as outlined during the company’s Capital Markets Day in 2023.