Graphic schematic of Kaikias in the US Gulf of Mexico. Credit: Shell.

Royal Dutch Shell division Shell Offshore has initiated deep-water production at the first phase of Kaikias subsea development in the US Gulf of Mexico.

With anticipated peak production of 40,000boed, Kaikias is situated in the prolific Mars-Ursa basin approximately 210km from the Louisiana coast.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Shell operates and owns 80% working interest in the this deep-water project, while the remaining 20% is held by Mitsui Oil Exploration’s wholly owned subsidiary MOEX North America.

The Kaikias development sends production from its four wells to the Ursa hub, which is also operated by Shell and co-owned by BP, Exxon Mobil and ConocoPhillips. The volumes from the hub subsequently flow into the Mars oil pipeline.

“In addition to accelerating production for Kaikias, we reduced costs with a simplified well design and the incorporation of existing subsea and processing equipment.”

Shell noted that since last year it has minimised about 30% of costs at the Kaikias project, leading to lowered forward-looking, break-even prices of less than $30 per barrel of oil.

Royal Dutch Shell Upstream director Andy Brown said: “We believe Kaikias is the most competitive subsea development in the Gulf of Mexico and a prime example of the deep-water opportunities we’re able to advance with our technical expertise and capital discipline.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“In addition to accelerating production for Kaikias, we reduced costs with a simplified well design and the incorporation of existing subsea and processing equipment.”

Shell’s deep-water projects are said to have produced approximately 731,000boed globally in the first quarter of this year. The company decreased an average of 45% global deep-water unit development and operating costs over the last four years.