Shell sells interest in Gulf of Mexico assets
- Business & Finance
Japanese firm Mitsui & Co is buying into Shell’s offshore fields in the U.S. Gulf of Mexico.
The deal entails Mitsui buying a 20 percent working interest in Shell’s Kaikias and Circius fields, spread acros four blocks in the Mississippi Canyon in the Gulf of Mexico.
The four blocks, encompassing 93 square kilometers, are located approximately 100 kilometers south-southeast of New Orleans, offshore Louisiana.
Mitsui said that production of crude oil and gas would utilize the existing near field infrastructure, presenting opportunities for early commercialization at reduced development costs. The recoverable resources of the entire blocks are estimated to be over 100 million barrels of oil equivalent.
In addition, Mitsui said, there is further exploration potential within the blocks which may contribute to further build up the reserves and continue production over the long term.
In a statement given to Offshore Energy Today on Monday, a Shell spokesperson confirmed the Gulf of Mexico stake sale, adding that financial details would not be disclosed.
Speaking about the assets involved in the transaction, the spokesperson said: “The assets are located in the Mars-Ursa basin in close proximity to existing Shell infrastructure in the deep-water heartland and where Shell has the proven knowledge, technology and expertise to safely and cost-effectively find and produce oil and gas.
“Kaikias/Circius is a financially attractive near-field opportunity that could exceed 100 million barrels of oil equivalent recoverable. Shell acquired the licenses for Circius in 2016. The full development plan for these assets includes a five-well program.”
Shell discovered Kaikias in August 2014 and appraisal drilling revealed more than 300 feet of net oil pay in August 2015. To remind, Shell confirmed in November last year that the development potential of Kaikias could exceed 100 million barrels.
Offshore Energy Today Staff