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UPDATE 1-Shell shuts Auger platform for Cardamom start-up

Wed, 17th Jul 2013 17:07

LONDON, July 17 (Reuters) - Royal Dutch/Shell isshutting down production at its Auger platform in the Gulf ofMexico while it hooks up its new Cardamom oilfield to thetwo-decade old platform's infrastructure.

A Shell spokeswoman said on Wednesday the company began workthis week on the shut-in which will cut off 55,000 barrels a dayof production. A statement said the platform "should restart inthe fourth quarter of 2013."

Cardamon, 100 percent owned by Shell, will start producingin 2014 and will deliver at a peak rate of 50,000 barrels of oilequivalent per day, adding to Auger's 55,000, of which Shellowns 30,000.

"Cardamom is a great example of using existinginfrastructure to increase oil and gas production in a lesscapital intensive way," Shell executive president John Hollowellsaid.

Shell, like its peers, is struggling to replace reserves andboost production, and faces a squeeze on earnings as the hugecost 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 ofoil equivalent per day once it starts pumping oil next year.


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