Shell's Latest GOM Deepwater Project Won't Be Built in the US

Photo source: PR Newswire

Photo source: PR Newswire

Shell's latest deepwater project, Vito, will be approximately 150 miles southwest of New Orleans.  However, none of the construction of that project was awarded to Louisiana, or any other state, for that matter.  Shell has awarded the construction contract to a fabricator overseas.

Sembcorp Marine Rigs & Floaters Pte. Ltd., a wholly owned subsidiary of Sembcorp Marine Ltd., is headquartered in Singapore.  As opposed to previous construction projects which were, at least, partially constructed by South Louisiana fabricators, this one will not be.

As a result of the decision to have this project done overseas, the Louisiana Legislature, during the recent regular session, issued the following proclamation:

"Senate of the Legislature of Louisiana does hereby memorialize Congress and the Louisiana delegation to the United States Congress to take such actions as necessary to encourage that the design and construction of the Vito development in the Gulf of Mexico occur in Louisiana."

Louisiana businesses should be rightfully upset that Shell has decided to turn their back to them in the construction of this platform.  The state's vital role in the oil and gas industry and the dependence on the state for fueling the nation should not be overlooked.

Posted on July 2, 2018 and filed under Louisiana, Oil and Gas.