May 23, 2019 . Shell has revamped its deepwater strategy to fit the needs of a low oil price environment, and its Appomattox project in the Gulf of Mexico is a key example of how the company is keeping deepwater not only … "So then the question is, how do you keep guys motivated to work quickly when they’re going to be out of a job at the end?" 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With each episode comes a new location and mega-structure, taking him around the globe to explore everything from the world’s longest underground railway tunnel to our own amazing Appomattox floating platform system. As the oil price continued to fall through 2015, it became clear this was much more than a short-lived downturn. But it was initially shaping up to be costly. Marno de Jong believes Appomattox has set a new standard. 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Shell says those discoveries could become additional tiebacks to Appomattox, bringing the total estimated discovered resources in the area to more than 800 million boe. This is a cyclical industry, they said. Project team members at all levels were strongly encouraged to look critically at costs that had previously been unchallenged. final video transcription. In the company's release, Andy Brown, Upstream Director for Royal Dutch Shell noted “That Appomattox was safely brought online ahead of schedule and … Its namesake discovery held estimated at 500 million BOE, according to Shell, which said a handful of other nearby Norphlet finds could sustain production, expected to reach 175,000 b/d. But while you can engineer anything, it’s always a question of, how do you build this safely? The Appomattox team would be the first to apply this approach in the Gulf of Mexico, allowing Appomattox to remain well below regulatory nitrogen oxide emission levels while reducing one of the biggest operating expenses: fuel. Shell discovered Appomattox in 2010. Conscious of the project's scale – and of its financial risk – the Appomattox team ultimately reduced costs on the project by over 40% after it was approved for construction. Note: this story was originally published in 2018 and updated in May 2019. Contractors and the Shell team worked closely together to reduce costs and maintain efficiency while preserving jobs. The Appomattox team went after all costs irrespective of size - chasing hundreds of ideas for saving money that together might add up to billions of dollars. The displacement of it is at 125k metric tons which is actually bigger than the largest aircraft carrier. It's the coolest, thing I've ever done right? The Shell-operated Appomattox floating production system in the US Gulf of Mexico has been brought into production several months ahead of schedule, the British-Dutch supermajor announced on Thursday. "What we found was that many of the efforts to reduce cost also reduced our safety exposure offshore, decreasing the potential for people to get injured," says Mike Dupre, principal engineer for pipelines. Some 350,000 oil and gas workers were laid off worldwide in the two years following the collapse of the oil price, with job losses near 100,000 in Texas alone. One key technique they adopted was what is known as batch drilling - several wells drilled at once, in assembly line fashion. But the most important number for Shell is this one: The Appomattox has the potential to produce 175,000 barrels of oil a day. Could the world's cities become carbon neutral? There’s some people here that I’ve formed a lifelong relationship with and had lots of fun with them. The things that I’ve seen Shell do on this Hull are absolutely amazing. Plans call for a four-column semisubmersible FPS with 175,000-boe/d capacity to produce the estimated 650 MMboe contained in Appomattox and Vicksburg. The future of the Shell project, Appomattox, seemed to depend on it. Richard Hammond’s “BIG” series on the Discovery’s Science Channel features Shell’s amazing Appomattox floating platform system in the Gulf of Mexico. By pulling data along every step of the complex wells process, workers scrutinised the number of minutes and dollars spent on tasks until they had devised the most efficient system possible. "The one psychological upside is that it becomes absolutely clear to people at all levels and across the supply chain that we have to win this cost-reduction fight if we're going to stay in business," recalls Appomattox Project Manager Marno de Jong. Read more about Shell’s deep-water work around the world. Shell Houston campus caps 2018 with a win for conservation. The well was drilled to a depth of 7,643m (25,077ft) and encountered approximately 162m (530ft) of oil pay. It took an abandoned nuclear missile silo, a vast underwater laboratory and a lot of hard work. Current RTS applications include virtual multiphase metering, blockage detection in wells/flowlines due to asphaltene/scale deposition, and a performance monitoring system for topsides process coolers designed to predict exchanger fouling/plugging. And try to limit our exposure to working at height, confined space, dropped objects. During the toughest downturn in oil prices, some energy projects had to find inventive ways to survive. It’s been an incredibly rewarding experience and something I’ll remember for the rest of my life. "We celebrated and recognised those people when they delivered," says Chesters. It was important, for example, to find ways to support contract workers facing uncertain employment prospects. In many ways, Appomattox is the culmination of a large amount of successful projects that preceded it. Series on the Discovery Channel, Richard Hammond’s BIG! Large projects such as Appomattox provide essential jobs for many communities on the Gulf Coast. The Appomattox team went after all costs irrespective of size - chasing hundreds of ideas for saving money that together might add up to billions of dollars.'. Dynamic Ind. As the project developed, the offshore industry continued to face a dearth of investment, and things remained gloomy. Appomattox, which is located in U.S. waters, was completed ahead of its expected startup in the third quarter of 2019 and at around 40% below its initial planned cost in 2015, Shell said. Shell is still reviewing possible tiebacks from nearby Rydberg (MC 525, found in 2014) and Gettysburg (DC 398, announced last February) adding a potential 150 MMboe to the overall development. 80 miles off the louisiana coast, the latest feat of engineering in the shell deep water portfolio is underway. Onshore plants and refineries commonly use an ultra-efficient technology called combined cycle power generation, where the heat from a gas turbine exhaust is used to power a steam turbine-driven electric generator. This was less than one-third what it was when Appomattox was conceived. ... on piping and structural Pipe Racks according to client specs / industry standards. I like to think that I’m here to help people go home safely to their families.We spend time before we even start executing the work talking about safety, talking about expectations, we do team building, we do engagement with the craft. Stones Deep-Water Project Shell safely started production from its next-generation deepwater oil and gas project called Stones. While the project team's focus was to reduce initial capital costs, another priority was to minimise costs over the life cycle of Appomattox and to reduce the environmental impact of powering operations offshore. Aug 2015 – Present 5 years 1 month. Irvin Tyler – Appomattox Construction Team Lead. Where new pipelines cross existing pipelines, these concrete mattresses are used to separate and protect the two pipelines. Royal Dutch Shell plc, through its subsidiary Shell Offshore Inc (Shell) announces today that production has started at the Shell-operated Appomattox floating production system months ahead of schedule, opening a new frontier in the deep-water US Gulf of Mexico. "Our models project a massive supply gap around 2025, where demand will outpace supply," says William Turner, a senior analyst at Wood Mackenzie, the research and consultancy firm. Wells engineering manager Adrian Chesters remembers brainstorming workshops with up to 100 workers, estimating that together they must have had 1,500 years' experience in deep-water operations. Seven years and millions of man-hours later, this amazing oil platform is started up for the first time. Appomattox, a deep-water oil and gas project is Shell’s largest floating platform in the Gulf of Mexico. big. connecting seabed to surface. By industry standards, this was the kind of project that is vital to energy supplies needed to drive the global economy for decades to come. But the wells team managed to halve the typical cost of drilling wells, realising huge savings. One was Appomattox, Shell's major deep-water project in the Gulf of Mexico. "The success we had in the development of this project has provided a model for how we find cost savings while building efficiencies into offshore projects of the future," he says. We offer comfortable, affordable accommodations whether you are with us one night, or plan to stay and enjoy the area. moment, no silver bullet. When it came to reducing cost, there was no single "Eureka!" But this is not the end. Animated graphic with map of Geoje, South Korea then rotating around the globe to Ingleside, TX, USA. MARNO DE JONG. Appomattox will add approximately 175,000 barrels of oil equivalent per day (Shell share) when it reaches peak production, with a breakeven price below $50 per barrel. SOT. The Appomattox weighs 85,000 tons, contains six and a half football fields’ worth of floor space and displaces more ocean water than an aircraft carrier. The rig drills just through the surface at several locations, then returns to drill the middle section of each well, and so on. The de… Shell expects IG production to be between 900,000 and 940,000 boe/d in 4Q2020, which is above its previous forecast and higher than output of 820,000-860,000 boe/d in the third quarter. The Appomattox development host will consist of a semi-submersible, four-column production host platform, a subsea system featuring six drill centres, 15 producing wells, and five water injection wells. Across the offshore industry, investment plans were being scrapped. The Appomattox team had to prove that in the era of low-price oil there was still a place for major projects - and that it was possible to cut costs without compromising safety. Spanning the width of two football fields and weighing 125,000 metric tons — more than the largest aircraft carriers — the Appomattox is Shell’s … shell appomattox surf. And the cycle will swing back, like it always does. We can do this today safely if we concentrate on our tasks, we don’t rush, and we work the plan. Over the next couple of years as we ramp up Appomattox to its full production potential, it could be as much as 1/3 of the production for Shell in the Gulf of Mexico. Another technique involved so-called mattresses. The Appomattox project to me has been absolutely fantastic. Can this technology tackle climate change? Learn how a massive oil platform is designed and built to last 40 years in the harsh elements of the Gulf of Mexico. "It's surprising how that lights a fire within the team, an enthusiasm for chasing more ideas that will lower costs.". 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Appomattox has recently celebrated "first oil" – the initial flow of oil from the reservoir beneath the ocean floor to undersea pipelines. Constructed in Geoje, South Korea, the hull of the Appomattox deep-water floating production system (FPS) weighs approximately 40,000 tonnes (t). Shell is the number one global lubricant supplier, delivering market-leading lubricants to consumers in over 100 countries. This is the story of, how humankind is made, the seemingly impossible possible, Richard Hammonds be continues Wednesday at nine brand new. This is, where things get serious, the processing platform. The newly discovered Rydberg and Gettysburg fields can also be tied-back to the Appomattox platform in future. This month, against what once seemed impossible odds, it starts production. How the 24,200-tonne Brent Delta platform was lifted and carried to an industrial recycling centre more than 700 kilometres away. But the lower the price of oil, the harder it would be to make Appomattox profitable. Shell has a long history of developing energy projects using its knowledge, experience and proven deep-water technologies to unlock new resources safely and efficiently. Shell’s Appomattox Platform in the Gulf of Mexico "That Appomattox was safely brought online ahead of schedule and far under budget is a testament to … To see it finish, finish on time, within budget, and done as safe as its been done is really pretty gratifying for me and for the site team to have delivered like we have. The economic outlook would only get worse. "That Appomattox was safely brought online ahead of schedule and … Although traditionally thought of as standard designs, the Appomattox team found new ways to make them stronger and more effective, reducing by hundreds the number of mattresses needed. Darylene Harris Recognized in Faces of Diversity, Discovery Channel features Shell Appomattox Platform. The people that I’ve met are truly incredible. Willing to benefit from the successful experience in Olympus, Shell and Nexen, develop Appomattox with similar process and selected Houston Offshore Engineering to design the topsides.. I'm investigating the newest and biggest oil and gas, production platform in the Gulf of Mexico. Our location off Highway 460 makes it easy to reach popular area attractions. The historic downturn caused layoffs from Canada to Brazil, from the North Sea to Malaysia. Series on the Discovery Channel sees him go behind-the-scenes of some of the largest structures and machines around the world to gain insight into the science of ‘big.’. Text Overlay – 16 stories high, 2 football fields wide, Mark Kite – Appomattox Construction Team Lead. And I think when you just look at the scale, the size, the height… When you see it in person it really brings you a certain sense that Shell is doing great things. Shell Appomattox - Hull Sail Away Milestone 1 Transcript, It was coined very early on that we’re on the amazing Appomattox, and I do truly believe that this is an amazing Appomattox. The Appomattox Hull is the largest floating production system that Shell has ever built. moment, no silver bullet. In late 2014, as the price of oil tumbled, seasoned engineers drafting plans to build a new deep-water oil and gas project in the US Gulf of Mexico told their younger, more anxious colleagues not to sweat it. Shell discovered Appomattox in 2010 and Vicksburg in 2013. "And onshore production just doesn't produce the volumes they do offshore.". Shell’s Appomattox project, located in the Gulf of Mexico about 80 miles south of New Orleans, is the first high temperature project to gain BSEE approval and begin production. The Shell Appomattox FPS (floating production system) is going to be Shell’s largest FPS in the Gulf of Mexico once it is brought out to its home in the Appomattox/Vicksburg field, 80 miles off the coast of Louisiana. Matthew Winters – Appomattox Project Engineer. The Appomatox field was discovered in March 2010 by drilling the discovery well at Mississippi Canyon block 392. Safety was our number one priority.". We’re going to finish up our work on the Hull, and get it ready for its long journey to the Gulf of Mexico…, Graphic overlay - Skidding the Hull Into the Water, Graphic overlay – Hull is Towed 14km to Transport Vessel, Graphic overlay - Hull Floats On To Transport Vessel. What is Shell's Net Carbon Footprint ambition? The biggest offshore project for Shell in the Gulf of Mexico, and one of the region's deepest, Appomattox would be designed to produce 175,000 barrels of oil and gas equivalent a day, drilling in waters 2,200 metres deep (7,400 feet). FINAL DESTINATION. says Mark Kite, Shell construction manager for Appomattox. 'When it came to reducing cost, there was no single "Eureka!" Richard Hammond’s “BIG” series on the Discovery’s Science Channel features Shell’s amazing Appomattox floating platform system in the Gulf of Mexico. Shell keeps deepwater viable with Appomattox project. The “BIG” series follows Hammond as he goes behind the scenes to explore some of the world’s largest and most impressive structures to gain insight into the science of ‘big.’ With each episode comes a new location and mega-structure, taking him around the globe to explore everything from the world’s longest underground railway tunnel to our own amazing Appomattox floating platform system. What could the roads of the future look like? The Appomattox Hull has “set sail” on its long and impressive journey to the Gulf of Mexico. Appomattox is a joint venture between Shell, as operator, (79%) and CNOOC Petroleum Offshore S.A. 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