Shell Offshore Inc., a subsidiary of Shell plc, has made a strategic decision to enhance oil production at its Vito field in the Gulf of Mexico and approved a final investment decision (FID) for a waterflooding project. This project, scheduled to start in 2027, aims to significantly increase production capacity in the Vito field by implementing a secondary production technique called waterflooding.

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

Shell plans to use this technology in the Vito field to significantly increase oil production. The project involves the use of three water injection wells drilled as pre-production wells. By recharging the reservoir and pumping oil to 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 Vito waterflooding project is part of Shell’s broader strategy to maximize the potential of its assets in the Gulf of Mexico. The region is a focus area for Shell as the company is the leading deepwater operator there. The Gulf of Mexico production assets have the lowest greenhouse gas intensity in the world, consistent with Shell’s commitment to sustainable energy production.

Zoë Yujnovich, Integrated Gas and Upstream Director at Shell, highlighted the benefits of this project: “Over time, we have recognized the benefits of waterflooding as we look to fill our hubs in the Gulf of Mexico. This investment will provide us with additional high-margin, lower-carbon barrels from our privileged upstream business, while maximizing our potential from Vito.”

Discovered in July 2009, the Vito field lies in over 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 concept being simplified and redesigned in 2015. This redesign not only reduced the plant’s lifetime CO2 emissions by approximately 80%, but also reduced costs by over 70% compared to the original concept.

The financing plan for the initial development of the Vito field was announced in April 2018, with first oil expected to be achieved in February 2023. The waterflood project is expected to further increase the field’s production and contribute to Shell’s goal of stabilizing production at 1.4 million barrels of liquids per day by 2030, the company outlined at its 2023 Capital Markets Day.