LONDON, Dec 16 (Reuters) – Oil giant Shell (SHEL.L) has made a final investment decision in a water flood project at the Caikias oil field in the U.S. Gulf of Mexico to accelerate oil recovery and extend the life of its Ursa platform.
The project is expected to add 60 million barrels of oil equivalent to recoverable resources.
This is the latest investment in US Gulf for Shell, the region’s largest deepwater operator, which aims to maintain liquids production of nearly 1.4 million barrels of oil equivalent per day through 2030.
The project’s first launch is scheduled for 2028, which will extend Ursa’s production lifecycle by several years.
Flooding is a secondary recovery technique that injects water into a reservoir to displace additional oil and repressurize the formation.
Shell operates the tensile leg platform Ursa in the Mars Corridor, in which it holds a 61.3% stake along with BP and ECP GOM III. Shell announced in February that there was growing interest in its Ursa platform.
Kaikias was discovered in 2014 and has been in production since 2018, located approximately 130 miles (209 km) off the coast of Louisiana in more than 4,000 feet (1,219 meters) of water.
Report by Stephanie Kelly. Editing: Jean Harvey
Share this:
