Shell Offshore, a subsidiary of Shell, has acquired the remaining 20% working interest in the Kaikias field in the US Gulf of Mexico.
Shell Offshore acquired the stake from MOEX North America (MOEX), a fully owned subsidiary of Japan’s Mitsui, to become a 100% owner of the field, while remaining as its operator.
Discovered in 2014, Kaikias field is a deepwater project in the US Gulf of Mexico, located in the prolific Mars-Ursa basin, around 210km off the coast of Louisiana.
The field started production in May 2018 and uses a subsea tieback to the nearby Ursa production hub.
Shell said the purchase underscores its long-term commitment to the US Gulf of Mexico.
Also, its US Gulf of Mexico production has the world’s lowest greenhouse gas (GHG) intensity compared to other IOGP oil- and gas-producing members, said the oil and gas company.
Furthermore, Shell and MOEX are planning to apply for federal regulatory approval.
Shell deep water executive vice president Rich Howe said: “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 US Gulf of Mexico.”
In parallel to the transaction, Mitsui has decided to dissolve and liquidate its subsidiary MOEX.
The Japanese corporation said the sale of its stake in the Kaikias field is part of its strategy to restructure its business portfolio.
The move closely follows Shell Offshore’s Final Investment Decision (FID) for a phased drilling campaign in the US Gulf of Mexico to boost production from the Perdido spar.
Perdido Spar is a production platform that serves three deepwater fields in the US Gulf of Mexico, Great White, Silvertip, and Tobago.
The campaign is designed to deliver three wells in the Great White unit, which is operated by Shell Offshore with a 33.34% interest, alongside Chevron (33.33% stake) and BP (33.33% stake).
