Shell enlarges its stake in US deepwater oil assets with $735M buy

Shell Offshore and Shell Pipeline Company (SPLC), subsidiaries of the UK-headquartered energy giant Shell, have acquired the interests ConocoPhillips, a U.S. oil major, held in its assets in the Gulf of America (GoA), formerly known as the U.S. Gulf of Mexico (GoM).

Following the confirmation of a deal with ConocoPhillips in February 2025, Shell has brought into its fold the U.S. oil major’s interests in the Ursa and Europa assets, including Ursa Oil Pipeline Company and an overriding royalty interest in the Ursa field, for $735 million.

Thanks to the European oil major’s strategy to invest in what are said to be profitable and carbon-competitive oil and gas projects with a strong integrated value chain, Shell Offshore and Shell Pipeline Company have increased their stake in the Ursa platform in the Gulf of America from 45.3884% to 61.3484%.

The UK-headquartered giant claims that deepening its interest in existing assets also contributes to maintaining stable liquids production from its Upstream business. Shell is the operator of the Ursa tension-leg platform (TLP) and holds a 61.3484% working interest (WI) ownership in the asset with BP Exploration & Production (22.6916% WI) and ECP GOM III (15.96%) as its partners.

This acquisition also entails ConocoPhillips’ 11.81% membership interest in the Shell-operated Ursa Oil Pipeline Company, which will be held by SPLC, as the agreement was adjusted following preferential rights election by partners, bringing Shell’s working interest in the Ursa pipeline from 45.39% to 57.20%.

Aside from this, the transaction encompasses 1% WI in the Europa prospect, which is also operated by Shell, and a 3.5% overriding royalty interest (ORRI) in Ursa that ConocoPhillips acquired through the Marathon Oil Corporation merger completed in November 2024.

Situated approximately 130 miles (209.21 kilometers) southeast of New Orleans within the Mars Basin, seen as one of the most prolific hydrocarbon basins in the world, the Ursa TLP began production in 1999. The Ursa/Princess field has produced over 800 million barrels of oil equivalent total gross over 25 years.

Speculation over a potential business combination between Shell and its rival, BP, has resurfaced. It is being said that Shell is simply bidding its time until oil and stock prices have dropped enough to make its move, as its market cap is almost twice as large as BP’s at this point.

Shell’s spokesperson told Offshore Energy in February 2025 that “no significant inorganic acquisitions” were being pursued as the firm considers its own shares as “an extremely attractive investment opportunity,” preferring to “allocate capital to them than elsewhere.”