LONDON, July 17 (Reuters) - Europe’s biggest oil company Royal Dutch Shell said a project to get oil pumping from its Cardamom field in the Gulf of Mexico would involve using existing infrastructure to help keep costs down.
Shell said on Wednesday that it would shut down production at its Auger platform to enable its Cardamom wells to be connected to Auger’s existing infrastructure.
“Cardamom is a great example of using existing infrastructure to increase oil and gas production in a less capital intensive way,” Shell executive president John Hollowell said.
Shell, like its peers, is struggling to replace reserves and boost production, and faces a squeeze on earnings as the huge cost of building oil infrastructure rises.
Auger will restart output later this year, the company said, adding that Cardamom will produce at around 50,000 barrels of oil equivalent per day once it starts pumping oil next year.