Olushola Okunlade Writes

Shell Offshore Inc., a subsidiary of Shell plc (Shell), announced that production has started at the Shell-operated Vito floating production facility in the US Gulf of Mexico (GoM). With an estimated peak production of 100,000 barrels of oil equivalent per day.

Vito is the company’s first deep-water platform in the GoM to employ a simplified, cost-efficient host design.

Vito is Shell’s 13ᵗʰ deep-water host in the Gulf of Mexico with estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.

Shell is the leading operator in the US Gulf of Mexico for oil and gas production. In addition to operations in Brazil and the US Gulf of Mexico, Shell’s deep-water portfolio includes Argentina Shales organization and frontier exploration opportunities in Mexico, Suriname, Sao Tome & Principe, Argentina, and Namibia.

“Vito is an excellent example of how we are approaching our projects to meet the energy demands of today and tomorrow, while remaining resilient as we work toward achieving net zero emissions by 2050,” said Zoe Yujnovich, Shell’s Upstream Director, adding, “Building on more than 40 years of deep-water expertise, projects like Vito enable us to generate greater value from the GoM, where our production has amongst the lowest greenhouse gas intensity in the world for producing oil.”

The Vito development is owned by Shell Offshore Inc. (63.11% operator) and Equinor (36.89%). In 2015, the original host design was rescoped and simplified, resulting in a reduction of approximately 80% in CO₂ emissions over the lifetime of the facility as well as a cost reduction of more than 70% from the original host concept.

Vito also serves as the design standard for our Whale project that will feature a 99% replication of the Vito hull and 80% of Vito’s topsides.

Shell’s Powering Progress strategy to thrive through the energy transition includes increasing investment in lower-carbon energy solutions while continuing to pursue the most energy-efficient and highest-return Upstream investments.

Olushola Okunlade Writes

Nigeria LNG Limited (NLNG) confirms that operations at its plant on Bonny Island are still active despite a Force Majeure declared in October 2022 and feed gas supply challenges.

The plant continues to produce LNG and LPG commensurate to the feed gas it receives from its upstream gas suppliers.

In addition to ensuring steady operation, NLNG remains committed to its culture of transparency and maintains consistent communication with key stakeholders on developments in the upstream sector.

The company is closely monitoring the resolution of supply challenges by all relevant parties.

SHELL AND MILIEUDEFENSIE SETTLE LONG-RUNNING CASE OVER OIL SPILLS IN NIGERIA

Olushola Okunlade Writes

Following the judgments of the Court of Appeal of The Hague on 29 January 2021, Shell and Milieudefensie have negotiated a settlement for the benefit of the communities of Oruma, Goi, and Ikot Ada Udo in Nigeria, impacted by four oil spills that occurred between 2004 and 2007.

The settlement is on a no-admission of liability basis, and settles all claims and ends all pending litigation related to the spills. Under the settlement, The Shell Petroleum Development Company of Nigeria Ltd (SPDC), as operator of the SPDC joint venture, will pay an amount of EUR 15 million for the benefit of the communities and the individual claimants.

An independent expert has confirmed that SPDC, as operator of the SPDC joint venture, has installed a leak detection system on the 20” lines that form the KCTL Pipeline in compliance with the judgment of the Court of Appeal of The Hague, the Netherlands.

The parties agree that remediation has been completed and certified by relevant regulatory agencies in Nigeria in accordance with Nigerian law. The parties agree this also follows from the judgments of the Court of Appeal.