Shell Expands Gulf of America Output with Perdido Spar Phase 3 Silvertip Wells

## Shell Adds Deepwater Production Capacity in Gulf of America Shell Offshore Inc., a subsidiary of Shell plc, has announced the commencement of production at Phase 3 of its Silvertip project in the Gulf of America (GoA), the company confirmed on October 28, 2026. The Phase 3 development delivers two additional wells tied back to the Shell-operated Perdido spar, one of the world's deepest offshore production facilities. The milestone represents a continued commitment by Shell to maximise recovery from its existing deepwater infrastructure in the region. ### Strategic Significance of Perdido The Perdido spar, located in the western Gulf of America in approximately 2,450 metres of water, has long served as a flagship asset in Shell's deepwater portfolio. By adding Phase 3 Silvertip production, Shell is leveraging existing host infrastructure to bring incremental barrels online with comparatively lower capital intensity than greenfield deepwater developments. This tieback strategy — connecting new subsea wells to an already-producing platform — has become increasingly favoured across the offshore industry as operators seek to optimise returns from sunk infrastructure costs while managing exploration and development risk. ### Broader Gulf of America Context The announcement underscores the continued vitality of the Gulf of America as a deepwater production hub. Despite the global energy transition, major operators including Shell continue to invest in brownfield expansions to sustain output from established basins. The GoA remains one of the most technically sophisticated offshore operating environments in the world, with deepwater and ultra-deepwater projects accounting for a significant share of US domestic crude production. Shell has not disclosed specific production rate targets for the Phase 3 Silvertip wells, but the addition of two producing wells to the Perdido spar is expected to provide a meaningful uplift to the facility's overall throughput. ### Outlook The Silvertip Phase 3 start-up signals that Shell's Gulf of America deepwater programme remains active, with tieback opportunities continuing to extend the productive life of anchor infrastructure like Perdido. Industry observers will be watching for further announcements regarding additional phases or new subsea tiebacks as Shell and its peers continue to high-grade their deepwater portfolios. *Source: PR Newswire / Shell Offshore Inc.*