By Ejekwu Chidiebere
Energy Window International (Media) − Shell Offshore Inc., a subsidiary of Shell plc, says it has taken a final investment decision (FID) on a waterflood project at its Kaikias field in the US Gulf of America, adding that water will be injected to displace additional oil in the reservoir formation which supplies production to its Ursa platform within the Mars Corridor.
Waterflood according to Shell is a method of secondary recovery where the injected water physically sweeps the displaced oil to adjacent production wells, while re-pressurizing the reservoir. The oil and gas major said that the first injection was expected in 2028, with anticipation of extending the production lifecycle of Ursa by several years.
“Following our decision to increase our stake in Ursa earlier this year, this additional investment continues to maximise the value of the asset,” says 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.”
Shell says it is the leading deep-water operator in the US Gulf of America, where its production has among the lowest greenhouse gas intensity in the world.
The Company noted that in August 2014, the Kaikias field (Shell 100% working interest (WI)) was discovered in more than 4,000 feet (1,219 metres) of water, approximately 130 miles (209 kilometres) off the coast of Louisiana, and production began in May 2018 with flowback to its Ursa platform.
Shell says it holds 61.3484% ownership in the asset as operator of the Ursa Tension Leg Platform, alongside BP Exploration & Production Inc. 22.6916% and ECP GOM III, LLC 15.96%, recalling that in February, it announced its acquisition of additional W1 in Ursa.
The Kaikias waterflood project according to Dutch Shell is estimated to increase recoverable resource volume by ~60 million metric barrels of oil equivalent (50P). Adding that the estimate of resources volumes is currently classified as 2P under the Society of Petroleum Engineers’ Resource Classification System.
It also noted that the reference to its US Gulf of America production having among the lowest greenhouse gas intensity in the world was a comparison among other members of the International Association of Oil & Gas Producers, communicated during its Capital Markets Day in 2025, adding that its aim to “sustain liquids production at around 1.4 million barrels of oil equivalent per day until 2030.”
The estimated recoverable resources presented above are 100% total gross figures, Shell said.