Shell, INEOS Energy Discover Oil In The Gulf of America

December 22, 2025

Shell and INEOS Energy have struck oil at a deepwater exploration well in the U.S. Gulf of Mexico, confirming a new discovery in the high-pressure Norphlet formation. Shell and INEOS Energy said the Nashville exploration well encountered high-quality oil more than 26,000 feet below the seabed, according to industry reporting

The well was drilled in deepwater acreage targeting the Norphlet play, a technically demanding formation associated with extreme pressure and temperature conditions that require advanced well design, specialized drilling fluids, and careful completion techniques to manage reservoir risks and costs.

“This is a good result for INEOS Energy and an important step in building our presence in the U.S. Gulf where world-class resources are to be found and developed responsibly,” INEOS Energy CEO David Bucknall said in a company statement.

INEOS Energy entered the U.S. offshore sector through its acquisition of upstream assets in the Gulf of Mexico, while Shell remains one of the basin’s largest operators with a long track record in deepwater exploration, development, and production. The Nashville well adds to ongoing exploration activity aimed at extending the commercial life of existing offshore infrastructure.

The U.S. Gulf of Mexico remains the country’s primary offshore oil province, hosting large, long-life deepwater developments operated by Shell, BP, and Chevron. Recent exploration results have underscored the continued role of ultra-deep, high-pressure drilling as operators pursue complex reservoirs at greater depths.

U.S. oil supply growth has increasingly tilted toward offshore production as shale basins mature and capital discipline tightens, with long-cycle deepwater projects gaining relative weight compared with shale

Shell and INEOS Energy did not disclose estimated recoverable volumes or a development timeline for the Nashville well, noting that further appraisal work will be required.

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