Discovered in August 2014,Kaikias is in about 4,575 ft (1,395 m) of water in the Mars-Ursa basin about 130 mi (210 km) offshore Louisiana.
The first-phase development sends production from four wells to the Shell-operated (45%) Ursa hub, which is co-owned by BP (23%), Exxon Mobil (16%), and ConocoPhillips (16%). From the Ursa hub, volumes ultimately flow into the Mars oil pipeline. Estimated peak production is 40,000 boe/d.
Since taking the investment decision in early 2017, Shell has reduced costs by around 30%, lowering the forward-looking, break-even price to less than $30 per barrel of oil.
Andy Brown, Upstream Director, Royal Dutch Shell, said: “We believe Kaikias is the most competitive subsea development in the Gulf of Mexico and a prime example of the deepwater opportunities we’re able to advance with our technical expertise and capital discipline.
“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 Offshore Inc., a subsidiary of Royal Dutch Shell plc, is the operator and has an 80% working interest. MOEX North America LLC, a wholly owned subsidiary of Mitsui Oil Exploration Co. Ltd., has the remaining 20% working interest.