© Ben Stansall/AFP/Getty Images'We will continue our leadership in safe, innovative deepwater operations,' said executive vice-president John Hollowell.
Company will drill almost two miles underwater in Gulf of Mexico as part of next generation of deep-water developmentsRoyal Dutch Shell is pressing ahead with the world's deepest offshore
oil and gas production facility by drilling almost two miles underwater in the politically sensitive Gulf of Mexico.
The move is being viewed in the oil industry as a demonstration of Shell's confidence that its technology can deliver returns on expensive and risky offshore projects, despite a recent downturn in oil prices.
It comes a day after ExxonMobil said it would start work on a $4bn (£2.6bn) project to develop the Julia oilfield, also in the North American ocean basin, and weeks after BP delayed development of its biggest Gulf of Mexico project - Mad Dog Phase 2 - citing rising costs.
John Hollowell, a Shell executive vice-president, said: "This important investment demonstrates our ongoing commitment to usher in the next generation of deepwater developments, which will deliver more production growth in the
Americas. We will continue our leadership in safe, innovative deepwater operations to help meet the growing demand for
energy in the US."
The move comes despite ongoing controversy over offshore exploration - especially in the Gulf of Mexico, where in April 2010 a fire and explosion on the BP
Deepwater Horizon rig killed 11 workers and started a leak that
took three months to cap. Last month BP said it had
paid $25bn (£16bn) of the $42bn it has set aside to cover the damage caused by the spill.