Shell increases stake in Ursa platform in the American Gulf
Shell Offshore Inc. and Shell Pipeline Company (SPLC), subsidiaries of Shell plc (Shell), have signed an agreement to increase their stake in the Ursa platform in the American Gulf.
In brief
Shell Offshore Inc. and Shell Pipeline Company are increasing their operating interest in the Ursa platform in the Gulf of America from 45.3884 percent to a maximum of 61.35 percent by purchasing a 15.96 percent stake from ConocoPhillips Company. The transaction also includes a 1 percent interest in the Europa project and a 3.5 percent royalty rate in Ursa. Closing of the transaction, subject to regulatory approvals and the pre-emption rights of the remaining partners, is planned for the end of the second quarter of 2025. The Ursa platform has been producing since 1999 and has delivered more than 800 million barrels of oil equivalent.
Under the agreement, Shell will increase its working interest (WI) in the Ursa platform, pipeline, and associated fields from 45.3884% to a maximum of 61.35%. This follows the acquisition of a 15.96% WI from ConocoPhillips Company (COP).
- This strategic investment is another step towards maximizing the value of our existing upstream assets and infrastructure,” said Zoë Yujnovich, Director of Integrated Gas & Upstream at Shell. - Acquiring additional shares in a mature asset with stable production generating significant cash flow also provides us with additional growth opportunities.
Production in the American Gulf is among the lowest in greenhouse gas emissions globally. Increasing our stake in the Ursa platform aligns with Shell's goal of ensuring secure energy supplies while investing in the most profitable and energy-efficient upstream assets.
The completion of the transaction is subject to regulatory approval, preferential rights by other WI partners, and fulfillment of closing conditions. The process is expected to be finalized by the end of Q2 2025.
Shell is the operator of the Ursa Tension-Leg Platform (TLP) and previously held a 45.3884% WI in the asset. Other co-owners include BP Exploration & Production Inc. (22.6916%), ECP GOM III, LLC (15.96%), and ConocoPhillips Company (15.96%).
The transaction also includes:
- COP’s 15.96% stake in the Shell-operated Ursa Oil Pipeline Company LLC, which will be acquired by Shell Pipeline Company;
- COP’s 1% WI in the Europa project (also operated by Shell);
- COP’s 3.5% Overriding Royalty Interest (ORRI) in Ursa, which COP acquired through the Marathon Oil Corporation merger in November 2024.
An increase in WI to a maximum of 61.35% is subject to preferential rights by the remaining partners.
The Ursa TLP platform began production in 1999 and is located approximately 130 miles (209 km) southeast of New Orleans in the Mars Basin—one of the world's most productive hydrocarbon basins. The Ursa/Princess field is a mature operational area that has produced over 800 million barrels of oil equivalent (boe) gross in 25 years, providing Shell with stable production and growth potential.
Shell US is the leading deep-water operator and one of the largest leaseholders in the American Gulf. It focuses on investments in the most productive areas near its existing assets.
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Source: Gazeta Morska · Compiled by: Kamil Kusier
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