Shell Faces Production Setback at Perdido Hub in U.S. Gulf
HOUSTON — Shell’s ambitions to boost output from its deepwater Perdido development in the U.S. Gulf of Mexico have hit a delay, as two of three new wells at the Great White field will not come online until the end of 2025, the company confirmed this week.
The trio of wells was originally scheduled to be fully operational by April. While one well began production in March, the remaining two have been pushed back to later in the year. The three wells were projected to add a combined 22,000 barrels of oil equivalent per day (boepd) once fully online—an incrementally significant figure for the Perdido platform, which has a nameplate capacity of 125,000 boepd.
Shell has not disclosed the reasons for the delay. The company holds a 35% operating stake in Perdido, with Chevron and other partners comprising the remainder of the ownership.
Since first production in 2010, Perdido has been a flagship asset for Shell in the deepwater U.S. Gulf, operating in some of the deepest waters in the industry. The company remains committed to the hub’s long-term output potential. In late 2024, Shell announced plans to drill two additional wells in the nearby Silvertip unit, expected to add a further 6,000 boepd. However, first oil from Silvertip is not anticipated until 2026.
The Gulf of Mexico continues to be a critical revenue driver for Shell amid a broader strategic pivot away from certain renewable ventures. As the company shifts its focus toward high-margin, conventional oil projects under its “value over volume” strategy, delays like this—especially in capital-intensive offshore environments—can impact near-term production targets and investor confidence.
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