Shell delays US offshore production start ups

Shell has delayed the startup of the PowerNap and Vito deepwater projects in the US Gulf of Mexico because of Covid-19-related issues.

The first oil date for PowerNap has been delayed to early 2022, and the first oil date for Vito has been delayed to 2022, the company said. Both were expected to start up late this year to coincide with an expansion of the Mars offshore crude pipeline system.

"Covid-19-related delays, including reductions in personnel and the impacts of Covid-19 barriers on day-to-day working, have impacted project timelines," Shell said.

Vito is expected to reach peak production of about 100,000 b/d of oil equivalent (boe/d) and PowerNap is expected to have a peak capacity of 35,000 boe/d.

The 65,000 b/d Mars pipeline expansion is on schedule to be completed this year. The 163-mile (262km) Mars system moves production from the Mississippi Canyon area offshore to salt dome caverns in Clovelly, Louisiana.

By Eunice Bridges