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Shell PLC on Tuesday said it its subsidiary Shell Offshore Inc has taken a final investment decision on a waterflood project at its Kaikias field in the US Gulf of Mexico. The London-based oil and gas exploration company said water will be injected to displace additional oil in the reservoir formation, which supplies production to the Ursa platform in the Mars corridor. Waterflood is a method of secondary recovery where injected water sweeps oil to adjacent production wells and re-pressurises the reservoir. It said the first injection is expected in 2028 and anticipated to extend the production lifecycle of Ursa by ‘several years’. The Kaikias field was discovered in August 2014 in more than 4,000 feet of water, around 130 miles off the coast of Louisiana. Production from the field began in May 2018 with flowback to Shell’s Ursa platform. Shell said it expects the Kaikias waterflood project to increase recoverable resource volume by around 60 million metric barrels of oil equivalent. ‘Following our decision to increase our stake in Ursa earlier this year, this additional investment continues to maximise the value of the asset,’ said Peter Costello, Shell’s upstream president. ‘It also contributes to our aim of maximising high-margin production and longevity in a core basin to maintain liquids production.’ In February, Shell increased its working interest in the Ursa platform to 61.4% from 45.4%, following an agreement to buy 16% from ConocoPhillips. Shares in Shell were down 2.8% at 2,622.50 pence on Tuesday afternoon in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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