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Shell Begins Work In Alaminos Canyon

Maritime Activity Reports, Inc.

October 15, 2007

Shell recently began work in the Alaminos Canyon region of the Gulf of Mexico on the company’s Perdido Regional Development Spar, which is expected to be the deepest spar production facility in the world.

The Clyde Boudreaux, a semisubmersible-drilling rig, will drill a 20-well batch set initially. The rig is equipped with two derricks, allowing for dual activity, which means work can be done in half the time it would take a single-activity rig. The Clyde Boudreaux should remain at Perdido through 2010, working even after the spar is installed.

First production from Perdido is expected around 2010 with the facility capable of handling 130,000 barrels of oil a day. Three fields will be developed with the Perdido Spar, which is jointly owned by Shell, Chevron and BP.

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