14th Aug 2024 19:25
(Alliance News) - Shell PLC on Wednesday said it would invest in a ‘waterflood’ project at its Vito asset in the US Gulf of Mexico.
The London-based oil major said water will be injected into the reservoir formation to displace additional oil.
The process is due to begin in 2027 and is expected to significantly enhance volume capacity at the Vito field, Shell said in a statement.
"Over time, we’ve seen the benefits of waterflood as we look to fill our hubs in the Gulf of Mexico," said Shell Integrated Gas and Upstream Director, Zoe Yujnovich.
"This investment will deliver additional high-margin, lower-carbon barrels from our advantaged Upstream business while maximizing our potential from Vito," she added.
Waterflood is a method of secondary recovery where the injected water physically sweeps the displaced oil to adjacent production wells, while re-pressurizing the reservoir. The three water injection wells were all drilled as pre-producers.
Shell is a leading deep-water operator in the US Gulf of Mexico.
In July 2009, the Vito field was discovered in more than 4,000 feet of water approximately 75 miles south of Venice, Louisiana
The Vito waterflood project will increase recoverable resource volume by 60 million barrels of oil equivalent, Shell said.
Shares in Shell closed up 1.0% at 2,808.52 pence in London on Wednesday.
By Jeremy Cutler, Alliance News reporter
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