Shell takes final investment decision on Vito waterflood project to boost oil recovery

Shell Offshore Inc., a subsidiary of Shell plc, has announced a critical Final Investment Decision (FID) on the Vito waterflood project at its Vito asset in the United States Gulf of Mexico. This strategic move is expected to significantly enhance oil recovery at the Vito field, underscoring Shell’s commitment to maximizing output from its key assets while maintaining a focus on lower-carbon operations.

The Vito waterflood project, which is scheduled to commence in 2027, involves the injection of water into the Vito reservoir formation. This technique, known for its effectiveness in secondary oil recovery, will displace additional oil, thereby boosting the production capacity at the field. The Vito waterflood project is poised to increase the recoverable resource volume by an impressive 60 million barrels of oil equivalent (boe), marking a significant enhancement in the field’s output potential.

Shell’s Vito waterflood project in the Gulf of Mexico is set to boost oil recovery by 60 million barrels while enhancing sustainability.

Shell’s strategic Vito waterflood project initiative

According to Shell Integrated Gas and Upstream Director, Zoë Yujnovich, the decision to move forward with the Vito waterflood project is a testament to the company’s ongoing efforts to optimize its Gulf of Mexico operations. Yujnovich emphasized that this investment is not only about increasing production but also about delivering high-margin, lower-carbon barrels, which are crucial for the company’s long-term sustainability goals. “Over time, we’ve seen the benefits of the Vito waterflood project as we look to fill our hubs in the Gulf of Mexico,” she stated, highlighting the project’s alignment with Shell’s broader strategic objectives.

Waterflooding is a widely used method of secondary recovery in the oil industry, where water is injected into the reservoir to push the remaining oil towards production wells. This process not only re-pressurizes the reservoir but also increases the efficiency of oil extraction. At the Vito field, three water injection wells have already been drilled as pre-producers, setting the stage for the upcoming Vito waterflood project.

Vito field: A cornerstone of Shell’s Gulf of Mexico operations

The Vito field, discovered in July 2009, is located in over 4,000 feet of water, approximately 75 miles south of Venice, Louisiana. This strategic location places it 150 miles southeast of New Orleans and just 10 miles south of Shell’s Mars Tension Leg Platform (TLP). Since its discovery, the Vito field has been central to Shell’s deep-water operations in the Gulf of Mexico, an area where the company boasts some of the lowest greenhouse gas (GHG) emissions intensity in the world for oil production.

In 2015, Shell made significant modifications to the original Vito host design, leading to an 80% reduction in CO2 emissions over the facility’s lifetime and a cost reduction of more than 70%. The field, operated by Shell with a 63.11% stake, in partnership with Equinor holding 36.89%, saw its first oil production in February 2023. The introduction of the Vito waterflood project is expected to further enhance the field’s output, solidifying its role in Shell’s portfolio.

Shell’s commitment to sustainability and efficiency in the Vito waterflood project

Industry experts view Shell’s decision to implement the Vito waterflood project as a strategic move to ensure the longevity and profitability of its Gulf of Mexico operations. The project not only highlights Shell’s ability to adapt and innovate in a challenging environment but also its dedication to achieving lower-carbon oil production. By focusing on the Vito waterflood project, Shell is positioning itself to maximize resource recovery while adhering to its environmental commitments.

As the global energy landscape continues to evolve, Shell’s efforts to balance production efficiency with sustainability are likely to serve as a model for other operators in the region. The Vito waterflood project, with its potential to significantly boost recoverable resources, is a clear example of how traditional oil and gas companies can integrate advanced recovery techniques to remain competitive while meeting the growing demand for cleaner energy.