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Shell’s Upstream Portfolio Expands in Q2 with Dover Discovery

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Shell’s upstream portfolio in the current quarter

Royal Dutch Shell (RDS.A) has expanded its robust upstream portfolio with the Dover discovery in the Gulf of Mexico. The company also kick-started production in the Kaikias field.

The Dover discovery is the sixth discovery in the Norphlet geologic area and marks a significant milestone for Shell, which already has a strong foothold in the region. The discovery is 13 miles from Shell’s mega deepwater project Appomattox. Let’s explore the details of this discovery.

Dover discovery

Shell’s Dover discovery is a deepwater field, offshore southeast of New Orleans. The discovery is located in Mississippi Canyon Block 612. Shell’s Dover discovery reflects the company’s expertise in deepwater exploration and Shell’s commitment to its growth priority—deepwater projects.

The Dover discovery could be a valuable addition to Shell’s Gulf of Mexico portfolio, as it can be tied back to the Appomattox host. This could result in higher production from the region with relatively lower expenses. Shell expects to take advantage of its exploration successes closer to its major deepwater projects via subsea tiebacks.

Shell’s Appomattox field is expected to begin production before the end of 2019. Shell has other discoveries around Dover, including Fort Sumter, Vicksburg, and Rydberg.

Shell has several global projects that are expected to start by 2020. These projects are expected to contribute more than 900,000 barrels of oil equivalent per day of new production net to Shell by 2020. We’ll talk more about this topic in the next part.

Series outline

In this series, we’ll look at Shell’s robust upstream portfolio. We’ll also review analysts’ ratings for Shell as well as its debt and cash flow positions. We’ll also consider changes in Shell’s earnings mix as well as its refining and chemicals margin trend in the first quarter.

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