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Shell starts production at huge offshore site

Associated Press, 04.01.10, 08:03 AM EDT

NEW ORLEANS — Shell Energy Resources Co. has started production at the world’s deepest offshore drilling and production facility in the Gulf of Mexico.

The Perdido development sits in 8,000 feet of water about 200 miles off the Texas coast.

Shell Energy Resources, a unit of Royal Dutch Shell PLC ( RDSA news people ), will use the facility to produce from three offshore fields that could require as many as 35 wells over the life of the fields.

Shell said Wednesday that the development will ramp up to annual peak production of more than 100,000 barrels of oil equivalent per day – equivalent to the energy needed to fuel 500 cars for 15 years.

The life span of the project is expected to be 20 years.

Copyright 2009 Associated Press. All rights reserved.


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