Shell Expands Control Over Ursa Platform in Gulf of America
Shell's Increased Interest in the Ursa Platform
Shell Offshore Inc. and Shell Pipeline Company (SPLC), subsidiaries of Shell plc (Shell), recently announced a significant step to enhance their footprint in energy production by increasing their working interest in the Ursa platform situated in the Gulf of America. This strategic move escalates Shell's working interest from 45.3884% to a maximum of 61.35%, following an agreement to purchase 15.96% interest from ConocoPhillips Company (COP).
Investing in Energy Security
The acquisition signifies Shell's commitment to diversifying its portfolio within the oil and gas sector. Zoë Yujnovich, Shell's Integrated Gas & Upstream Director, shared, "This targeted investment is the latest example of how we are unlocking more value from our existing Upstream assets and infrastructure." According to Yujnovich, the acquisition not only fortifies Shell's stake in an established asset generating robust free cash flow but also broadens the scope for future growth opportunities.
Environmental Advantages of the Gulf Operations
The Ursa platform's operations maintain one of the lowest greenhouse gas intensities globally, reflecting Shell's effort to ensure environmentally responsible energy production. By expanding its interest in the Ursa platform, Shell reassures stakeholders of its continued focus on efficient energy supply and sustainable growth trajectories.
Details of the Transaction
This new agreement is subject to several key conditions, including regulatory clearances and a preferential rights election among existing partners. Completion of the deal is anticipated by the end of the second quarter of the year 2025. The newly acquired working interest includes not only Shell's operational oversight of the Ursa Oil Pipeline Company LLC but also an ownership stake in the Europa prospect and an overriding royalty interest that came from a previous merger.
Long-standing Production Success
Shell has been a dominant operator in the Gulf of America, continuously focusing on enhancement and innovation in its production techniques. The Ursa Tension-Leg Platform has been producing since 1999, nestled approximately 130 miles southeast of New Orleans in the Mars Basin, a prominent area known for rich hydrocarbon resources. To date, the Ursa/Princess field has yielded over 800 million barrels of oil equivalent, showcasing Shell’s reliable production capabilities.
Commitment to Low Carbon Operations
Shell's drive to increase its working interest in Ursa is part of a broader strategy to uphold high standards in energy efficiency while minimizing its environmental footprint. The company's deep-water operations are regarded as some of the most significant in the Gulf, propelling Shell to the forefront of responsible energy production.
Frequently Asked Questions
Why is Shell increasing its working interest in the Ursa platform?
Shell aims to unlock additional value from existing assets, enhance energy security, and reinforce its position in the oil market.
What environmental considerations are associated with the Ursa platform?
The Ursa platform operates with one of the lowest greenhouse gas intensities globally, emphasizing Shell's commitment to sustainable energy practices.
When is the acquisition expected to be finalized?
The deal is slated for completion by the end of the second quarter of 2025, pending regulatory approvals and other conditions.
How has the Ursa platform performed historically?
Since its launch in 1999, the Ursa platform has generated over 800 million barrels of oil equivalent, proving its robust production capacity.
What other interests does Shell acquire from ConocoPhillips?
In addition to the working interest, Shell will acquire interests in the Shell-operated Ursa Oil Pipeline and a notable overriding royalty interest from past transactions.
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