Production at Perdido is scheduled to begin around 2010. Shell says the project, which dates to a lease sale in 1996, will be capable of producing 130,000brl/d of oil equivalent. The oil and gas from the development will be transported to the Texas coast by 123km and 170km of new oil and gas export pipelines, respectively. Deepwater drilling in the Gulf dates to 1979 when Shell began production, but development really didn't take off until the 1990s as technological advancements made it more feasible. Today, most continental US oil and gas production comes from the deepwater Gulf of Mexico, according to the US Energy Department. <>p> The US Minerals Management Service, which oversees offshore drilling, said that of the 68 rigs currently drilling in the Gulf of Mexico, 35 were in water deeper than 1,000ft and 16 were in depths greater than 5,000ft (330m and 1640m, respecitively). MMS spokeswoman Eileen Angelico said companies have drilled exploratory wells in depths greater than 10,000ft (3300m), but none have proceeded to the point of being ready for production. At Perdido, three fields named Great White, Tobago, and Silvertip will be tied together by a spar platform moored in about 8,000ft (2625m) of water. Spars consist of a large cylinder that supports a drilling and production platform, which is tethered to the seabed. Perdido is held in place by nine polyester mooring lines, each averaging more than 3km in length. Shell said it plans to top the new record with a well at 9,627ft (3158m) in the Tobago field. The company eventually plans to drill 35 wells at Perdido. As the US arm of Royal Dutch Shell, the company operates the platform and has a 35% share in the project; Chevron holds 37.5%, and the balance of 27.5% is held by BP.