Shell to invest billions in Gulf of Mexico
Oil giant Shell has announced it will be investing billions of dollars in the development of the Cardamon oil field in the Gulf of Mexico. The Anglo-Dutch company did not specify exactly how many billions it is talking about.
The Cardamon field was discovered last year using new seismic technology. Shell had suspected the existence of a large oil deposit there since it began developing the neighbouring Auger oilfield in the early 1990s. At the time further seismic exploration was frustrated by a layer of salt.
The Cardamon field is the first project to be sanctioned by the US government since it lifted the ban on drilling in the Gulf of Mexico last year. Shell believes the field could hold more than 140 million barrels and expects a peak production of 50,000 barrels a day.
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