Oil and gas major Shell (NYSE: SHEL) announced on Thursday that it had started production at the Whale offshore floating facility in the Gulf of Mexico.
Shell operates the Whale development and owns 60% of the project, while U.S. energy major Chevron (NYSE: CVX) holds a 40% stake. The project will reach peak production of roughly 100,000 barrels of oil equivalent per day (boepd).
Shell said it discovered the development in 2017 and has a recoverable resource volume of 480 million barrels of oil equivalent.
Whale achieved first oil around seven years after the development was discovered, primarily due to a delay in reaching a final investment decision following a cash preservation strategy adopted by Shell during the COVID-19 pandemic.
Separately, Chevron said production from the Whale development would help it reach 300,000 net boepd in the Gulf of Mexico by 2026.
The London-listed company has invested heavily in the prolific U.S. Gulf of Mexico. It has approved about 15 regional oil platforms and owns several exploration and production projects.
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