Shell's Appomattox hull sails from South Korea

The hull for Shell's giant Appomattox development in the deep-water US Gulf of Mexico has set sail from South Korea to Texas as the mega-project stays on track for first oil by the end of the decade.

The four-column, semi-submersible unit, built by Samsung Heavy Industries, was loaded onto Cosco heavy transport vessel Xin Guang Hua in Geoje, South Korea, and is now en route to Ingleside, Texas, Shell confirmed.

With the completion of the hull, fabrication for the project is now 60% complete, Shell said. The hull ultimately will be mated with the topsides, which is under construction at Kiewit Offshore Services' yard in Ingleside. Shell declined to provide a timeline for the hull's arrival in Texas.

The facility, which will weigh 125,000 tonnes, will produce about 175,000 barrels of oil equivalent per day at peak net to Shell, which owns a 79% share. Nexen owns 21%. First oil is due by 2020. 

"The Appomattox development is an attractive and competitive investment in Shell's portfolio, even more so as the team has reduced costs more than 20% since the project was sanctioned," a Shell spokeswoman said, adding that the project's breakeven price stands at $50 per barrel of oil.

Heavy-lift specialist ALE completed the skidding operation to get the hull aboard the Xin Guang Hua, which entered service late last year. At 40,440 tonnes, it was ALE's heaviest-ever load-out operation by hydraulic skidding. Load-out took 19 hours to complete, ALE said.

Appomattox will produce from a number of Jurrasic-aged discoveries in the Mississippi Canyon and De Soto Canyon areas of the US Gulf, including the eponymous field and the nearby Bicksburg discovery.

Shell's plan for Appomattox calls for a subsea system including six drill centres, 15 producer wells and five water injectors.

TechnipFMC will handle subsea hardware construction and installation.