Projects

Stones

(Shell interest 100%, Shell operated)

Our Stones project began production in September 2016 and is the deepest offshore oil and gas producing project in the world (9,500-foot water depth). To meet the challenges of the water depth in this area of the Gulf of Mexico, the Stones project uses a floating production, storage and offloading (FPSO) vessel, together with an industry-first combination of a disconnectable buoy and steel lazy wave risers. It is expected to reach 50 thousand barrels of oil equivalent per day (boe/d) peak production in the first phase of development, from more than 250 million boe of recoverable resources.

Malikai

(Shell interest 35%, Shell operated)

Malikai came on stream in December 2016. It is Shell’s second deep-water project in Malaysia after Gumusut-Kakap. The Malikai oil field is located around 100 kilometres (60 miles) off Sabah, in waters about 500 metres (1,640 feet) deep. It comprises two main reservoirs with a peak annual production of 60 thousand barrels per day (b/d). Featuring the company’s first tension leg platform (TLP) outside the US Gulf of Mexico, Malikai is an example of the strength of Shell’s global deep-water business, applying TLP expertise from decades of operations in the Gulf of Mexico.

Prelude

(Shell interest 67.5%, Shell operated)

Shell is building the world’s largest floating LNG (FLNG) facility, which will produce natural gas from a remote field off the north coast of Western Australia. The Prelude FLNG facility will be operated by Shell in a joint venture with INPEX (17.5%), KOGAS (10%) and OPIC (5%). As the Prelude construction nears completion, the focus remains on building a facility that is safe, profitable and reliable.

In 2016, the project saw a transition from construction to commissioning in Geoje, South Korea. 150 Australian production technicians are currently working in Geoje, supporting the commissioning of the facility. They will help run the facility during operations. The Prelude production wells and subsea infrastructure are now complete after a number of offshore campaigns at the site. The Prelude FLNG Collaborative Working Environment, which will provide 24/7 communications and support during operations, is up and running in Shell’s Perth headquarters.

Pennsylvania Chemicals

(Shell interest 100%, Shell operated)

On June 7, 2016, we announced the FID on a new 1.5-mtpa cracker and polyethylene plant in Pennsylvania, USA, which will use natural gas from shales as its feedstock to produce polyethylene. Polyethylene is used in many products, from food packaging and containers to automotive components. Commercial production is expected to begin early in the next decade.