Shell becomes sole owner of Gulf of Mexico field

Shell Offshore Inc., a subsidiary of the UK-headquartered energy giant Shell, has gotten its hands on the remaining stake in a deepwater field in the U.S. Gulf of Mexico, which has been developed as a subsea tie-back to the nearby Ursa production hub.

Following the acquisition of the 20% working interest in the Kaikias field in the U.S. Gulf of Mexico from MOEX North America LLC (MOEX), a subsidiary of Mitsui & Co., Ltd., Shell has brought its total interest in this asset to 100% and remains as the operator of the field. The duo will submit a request for federal regulatory approval.

Rich Howe, Shell’s Executive Vice President for Deep Water, commented: “Since its discovery, the Kaikias field has been a productive investment. By increasing Shell’s working interest in the field, we are creating options for our future as the leading producer in the U.S. Gulf of Mexico.”

The oil major explains that this investment underscores its long-term commitment to the U.S. Gulf of Mexico, where production is believed to be “essential” to ensuring a reliable and secure supply of energy. The production in the U.S. Gulf of Mexico is said to have among the lowest greenhouse gas (GHG) intensity for Scope 1 and 2 emissions in the world.

Discovered in 2014, the Kaikias field is located in the prolific Mars-Ursa basin, approximately 130 miles from the Louisiana coast. The production started in May 2018. Shell has been busy with multiple projects not just in the U.S. but also around the world.

Recently, Boskalis’ largest semi-submersible heavy transport vessel transported Shell’s new floating production unit (FPU) destined for the oil major’s new project in the U.S. Gulf of Mexico, which is slated to come online next year. The vessel, loaded with the 25,000-ton FPU, has arrived in Ingleside, United States.

In addition, the oil major made a new gas discovery in an offshore block located in Egypt’s Mediterranean Sea in November 2023. Stena Drilling’s drillship was used to drill this well, which is the first of three planned in Shell’s current drilling campaign.