Shell Offshore Inc., a subsidiary of Shell plc, has announced a Final Investment Decision (FID) on a 'waterflood' project at its Vito asset in the US Gulf of Mexico. The project involves injecting water into the reservoir formation to displace additional oil, with the process set to commence in 2027. This initiative is expected to significantly enhance volume capacity at the Vito field, delivering additional high-margin, lower-carbon barrels from Shell's Upstream business while maximizing potential from Vito.

The waterflood method, a form of secondary recovery, involves injecting water to physically sweep displaced oil to adjacent production wells and re-pressurize the reservoir. The project will include three water injection wells, all of which were drilled as pre-producers. The Vito field, discovered in 2009, is located in over 4,000 feet of water in the US Gulf of Mexico. The original Vito host design was simplified and rescoped in 2015, resulting in a significant reduction in CO2 emissions and cost.

The Vito waterflood project is anticipated to increase the recoverable resource volume by 60 million boe. Shell's U.S. Gulf of Mexico production is noted for having among the lowest greenhouse gas intensity in the world for producing oil. The company plans to stabilize production at 1.4 million barrels per day of liquids until 2030, as communicated at Shell’s Capital Markets Day in 2023.

The Vito field is a joint venture between Shell (Operator 63.11%) and Equinor (36.89%), with first oil achieved in February 2023. The investment in the waterflood project aligns with Shell's commitment to maximizing recovery from its assets while focusing on lower-carbon initiatives.