Shell Offshore Inc. (Shell), a subsidiary of Royal Dutch Shell plc, has announced the final investment decision for Vito, which is a deep-water development in the U.S. Gulf of Mexico. The investment is a forward-looking, break-even price estimated to be less than USD 35 per barrel. This decision sets in motion the construction and fabrication of a new, simplified host design and subsea infrastructure.
Vito is expected to reach peak production of approximately 100,000 barrels of oil equivalent (boe) per day, which represents a significant contribution to its continued growth in the Gulf of Mexico. The development currently has an estimated, recoverable resource of 300 million boe.
In 2015, Shell began to redesign the Vito project, reducing cost estimates by more than 70% from the original concept. Vito’s cost savings are due to the simplified design, in addition to working collaboratively with vendors in a variety of areas including well design and completions, subsea, contracting, and topsides design.