Shell Offshore Inc., Shell Deepwater Development Inc. and Shell Deepwater Production Inc., headquartered in New Orleans, La., are the Shell subsidiaries responsible for offshore exploration and production in the Gulf of Mexico.

Shell has been operating in the Gulf of Mexico for four decades, and these operations provide about 50 percent of its oil and gas production.

Shell is a leading producer of hydrocarbons and is the largest leaseholder in the Gulf of Mexico.

• Currently, Shell's net daily production from the Gulf of Mexico averages about 280,000 barrels of crude oil per day and 1.3 billion cubic feet of natural gas per day.
• Shell holds an interest in about 1,023 leases (gross) consisting of about 5.60 million acres, with a net interest of 871 tracts consisting of about 4.77 million acres in the Gulf of Mexico

Mars Platform MC 807

• The Mars Unit, approved by the MMS in December 1992, encompasses all or a portion of 6 OCS leases in the Mississippi Canyon Area - Blocks 762, 763, 806, 807, 850 and 851 - located in the Gulf of Mexico about 130 miles southeast of New Orleans. The leases were acquired by Shell in 1985 and 1988 for a total bonus of $5.3 million. Shell Deepwater Production Inc. is operator and has a 71.5% interest in the project. BP Exploration Inc. has the remaining 28.5% interest.
• The discovery well was drilled on Mississippi Canyon Block 763 in 1989. The average API gravity of the crude is about 29° - full quality data can be found on

Development Plans

• Shell announced in October 1993 its plans to develop Mars utilizing a tension leg platform (TLP) to be installed on Block 807.
• The TLP was installed in May 1996 in a water depth of 2,940 feet, which surpassed the depth record in the Gulf of Mexico for a permanent drilling and production platform - Shell's Auger TLP - which was installed in 2,860 feet of water in the latter part of 1993.
• Current production facilities are designed to recover about 500 million barrels of oil equivalent.
• The development cost for the initial phase is approximately $1.0 billion. About 55% of the project costs were spent for fabrication and installation of the hull, deck, facilities, and pipelines. The other 45% of the project costs will be spent for drilling and completion of the wells.

Production

• Production began July 8, 1996.
• Peak gross production is expected to be in excess of 150,000 barrels of oil per day and 140 million cubic feet of natural gas per day.
• The oil is transported 116 miles via an 18/24-inch diameter pipeline to the Clovelly, Louisiana area and the gas is transported 55 miles via a 14-inch pipeline to West Delta 143. Both pipelines were installed as part of the Mars development.

TLP Engineering & Construction Details

• The Mars TLP was designed and engineered by Shell Oil Company.
• The TLP is 3,250 feet high, from seafloor to the crown block of the drilling