Shell Offshore acquires full ownership of Kaikias field in US Gulf of Mexico
Shell Offshore Inc., a subsidiary of global energy leader Shell plc, has recently expanded its footprint in the US Gulf of Mexico by acquiring the 20% Working Interest (WI) in the Kaikias field from MOEX North America LLC, a 100% subsidiary of Mitsui & Co., Ltd. With this acquisition, Shell now holds 100% working interest in the field, continuing as the operator.
Strategic Importance of the Kaikias Field
Rich Howe, Shell’s Executive Vice President for Deep Water, emphasized the value of the Kaikias field since its discovery. The acquisition of additional working interest in the field aligns with Shell’s strategy to fortify its position as the leading producer in the US Gulf of Mexico. This move demonstrates Shell’s focus on creating sustainable options for the future in a key production region.
Shell Expands US Gulf Operations with 100% Stake in Kaikias Field. Photo courtesy of PRNewswire/Shell Offshore Inc.
Shell’s Commitment to Sustainable Energy Production
The investment in the Kaikias field underlines Shell’s long-term commitment to the US Gulf of Mexico, which plays a vital role in ensuring a reliable and secure supply of energy. Notably, Shell points out that the production in the US Gulf of Mexico stands as one of the areas with the lowest greenhouse gas (GHG) intensity for scope 1 and 2 emissions globally, marking a significant contribution to sustainability in the energy sector.
Regulatory Steps and Production Details
Shell and MOEX will proceed with submitting the acquisition for federal regulatory approval. The Kaikias field, a deep-water project in the US Gulf of Mexico, leverages a subsea tieback to the nearby Ursa production hub. Discovered by Shell in 2014, the field is situated in the Mars-Ursa basin, approximately 130 miles off the Louisiana coast, and began producing oil in May 2018.
Shell’s Leading Role in Offshore Production
This acquisition further cements Shell’s position as a leading operator in the US Gulf of Mexico. The Kaikias field’s strategic location and production capacity enhance Shell’s portfolio and reaffirm its commitment to being at the forefront of the oil and gas industry, especially in offshore energy production.