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

  MENSA Mississippi Canyon

  • Mensa is located 140 miles southeast of New Orleans and encompasses Mississippi Canyon Blocks 686, 687, 730 and 731.
  • Shell acquired Mississippi Canyon Blocks 730 and 731 in OCS Lease Sale 98 in May 1985 for lease bonuses totaling $12.6 million.
  • In June 1993, Shell traded with Pennzoil, Amoco and Arco for Mississippi Canyon Blocks 686 and 687 (value $2.3 million).
  • The water depth is approximately 5,300 feet. Mensa is the deepest production in the Gulf of Mexico.

    Development

    • Ultimate recovery is estimated at 720 billion cubic feet of gas.
    • The subsea system consists of three wells connected to a subsea manifold five miles away, which is then tied back to a shallow water platform at West Delta 143 via a 63-mile 12-inch flowline.
    • Liquids are accumulated at the Venice Gas Plant, downstream of the WD 143 block.
    • This 68-mile tieback is the longest in the world. The previous tieback record was 30 miles for the Troll Oseberg Gas Injection project in the Norwegian sector of the North Sea.
    • Installation of the major components is complete.
      1. The electrical distribution structure was installed in January 1997.
      2. The subsea manifold/template was installed in March 1997.
      3. Installation of the 12-inch flowline from the manifold to West Delta 143 was completed in May 1997.
      4. The first tree was installed in July 1997. Tree installation will continue through the fall 1998 as the final well is drilled and completed.
    • Initial system cost, including drilling, subsea system, completion, topsides, flowlines and umbilicals, is about $280 million.

    Production

    • Production began in July 1997.
    • Peak production rates of 300 million cubic feet of gas per day are expected to be achieved by the 4th quarter 1998.