Shell, through its subsidiary Shell Offshore, has approved a final investment decision (FID) for a waterflood project at the Kaikias field in the US Gulf of Mexico.
Waterflooding is a secondary recovery technique in which water is injected into a reservoir to maintain pressure and move oil towards nearby production wells.
The initiative involves injecting water into the reservoir to displace additional oil to be produced through the Ursa platform in the Mars Corridor.
The company plans to conduct the first water injection in 2028, which is expected to extend the production life of Ursa by several years.
Based on a P50 estimate, the Kaikias waterflood project will increase recoverable resources by around 60 million metric barrels of oil equivalent.
These resources are classified as proved plus probable under the Society of Petroleum Engineers’ Resource Classification System, according to the company.
Shell Upstream president Peter Costello said: “Following our decision to increase our stake in Ursa earlier this year, this additional investment continues to maximise the value of the asset.
“It also contributes to our aim of maximising high-margin production and longevity in a core basin to maintain liquids production.”
Shell holds a 100% working interest in the Kaikias field, which it discovered in August 2014 around 130 miles (209km) off the coast of Louisiana, US, in water depths exceeding 4,000ft.
The Kaikias field started production in May 2018, with oil and gas flowing back to the Ursa platform.
Shell operates the Ursa tension leg platform and owns 61.35% of the asset, with BP Exploration & Production holding 22.6916% and ECP GOM III holding 15.96%.
In May this year, Shell, through its subsidiaries, increased its stake in the Ursa platform, pipeline, and associated fields from 45.38% to a maximum of 61.35%.
The company’s subsidiaries signed an agreement in February to purchase a 15.96% working interest from ConocoPhillips Company.
Shell, at its 2025 Capital Markets Day, revealed its plans to maintain liquids production at around 1.4 million barrels of oil equivalent per day through to 2030.
