David Lawrence News

Wärtsilä and Shell Oil Company have signed a Joint Co-operation Agreement aimed at promoting and accelerating the use of liquefied natural gas (LNG) as a marine fuel. The agreement was signed in August 2011 and will run for several years. Supplies of low cost, low emissions LNG fuel will be made available to Wärtsilä natural gas powered vessel operators, and other customers by Shell. The Joint Cooperation Agreement will focus first on supplies from the US Gulf Coast, and then later expand their efforts to cover a broader geographical range. Gas fuelled marine engines are seen as being a logical means for ship owners and operators to comply with increasingly stringent environmental legislation.

Shell announced a significant new oil discovery in the deepwater eastern Gulf of Mexico, adding to discoveries in the area from 2009. The discovery is located at the Appomattox prospect in 2,200 metres (7,217 feet) of water in Mississippi Canyon blocks 391 and 392. Shell drilled the discovery well, located on Mississippi Canyon block 392, to a depth of 7,643 metres (25,077 feet) and encountered approximately 162 metres (530-feet) of oil pay. Shell then drilled an appraisal sidetrack to 7,910 metres (25,950-feet) and encountered approximately 116 metres (380-feet) of oil pay. Additional appraisal activities are planned for later in the year.