The Dover field is planned to be commissioned in late 2024 or early 2025. Credit: Clyde Thomas on Unsplash.

Shell Offshore, a subsidiary of Shell, has made the final investment decision (FID) for the Dover exploration field in the US Gulf of Mexico.

The field is planned to be developed as a below-sea connection to the Shell-operated Appomattox production hub.

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Planned to be commissioned between the end of 2024 and the start of 2025, the Dover field is expected to have a peak production capacity of up to 21,000 barrels of oil equivalent per day (boepd).

Shell deepwater executive vice-president Paul Goodfellow said: “Shell is a pioneer in the Norphlet reservoir with Appomattox, and we are building on our leading position in the reservoir with Dover.

“Last year we took FID on Rydberg, another subsea tieback to Appomattox, and Dover gives us an opportunity to add to our base in this prolific basin.”

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Shell owns a 79% stake in the Appomattox floating production system, which is located approximately 129km south-east of Louisiana.

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In a press statement, Shell said: “The investment at Dover underscores Shell’s long-term commitment to the US Gulf of Mexico, where production has among the lowest greenhouse gas (GHG) intensity in the world for producing oil.”

Furthermore, Shell has completed the sale of its stakes in two offshore production-sharing contracts (PSC) in Baram Delta, Malaysia, to exploration and production firm Petroleum Sarawak.

The deal, which was announced in December 2022, includes Shell’s stakes of 40% in the Amended 2011 Baram Delta EOR production sharing contract (BDO PSC), and a 50% stake in the SK 307 production sharing contract (SK307 PSC).

The deal consideration includes $475m and extra payments of up to $50m between 2023 and 2024, depending on commodity prices.