Shell announces Gulf oil discovery

Royal Dutch Shell has made a "significant" oil discovery in the Gulf of Mexico.

According to the organisation, which operates in more than 90 countries and territories in the world, the find adds to other discoveries in the deepwater eastern region of the location in 2009.

The source was uncovered at the Appomattox prospect in approximately 2,200 metres of water, with the company encountering 162 metres of oil pay after drilling to depths of over 7,500 metres.

Commenting on the news, executive vice-president of exploration David Lawrence said it builds on successful work completed last year.

He remarked: "Shell has the technology, the expertise and a skilled, motivated workforce to expand oil and natural gas production in the US and worldwide."

The firm made its initial oil discovery in the region seven years ago - entitled the Shiloh site - in which it has a majority shared interest of 80 per cent.