Shell completes acquisition of working interest in Ursa platform

Shell Offshore Inc. and Shell Pipeline Company (SPLC) say they have completed the previously announced agreement to increase their stake in the Ursa platform from 45.3884% to 61.3484%.

The Ursa TLP is located some 130 miles (210 km) southeast of New Orleans, in what the Shell companies now describe as “the Gulf of America” in Mississippi Canyon block 809 in 4,000 feet of water.

The Ursa TLP connects to Shell’s West Delta 143 platform via two 47-mile, 18-in. and 20-in. oil and gas pipelines which run to the West Delta 143 platform. The West Delta 143 facilities then serve as a transfer station for all production from the Mars corridor to onshore crude terminals. 

Shell says that this acquisition is part of its strategy to invest in profitable and carbon-competitive oil and gas projects with a “strong integrated value chain.” The company also says that “deepening” its interest in existing assets also contributes to maintaining stable liquids production from its upstream business.

Shell is the operator of Ursa TLP and now holds a 61.3484% working interest (WI) ownership in the asset with BP Exploration & Production Inc. (22.6916% WI) and ECP GOM III, LLC (15.96%).

The transaction also includes the following from ConocoPhillips:

• 11.81% membership interest in the Shell-operated Ursa Oil Pipeline Co. LLC, which will be held by SPLC. The agreement has been adjusted following preferential rights election by partners, bringing Shell’s working interest in the Ursa pipeline from 45.39% to 57.20%.
• 1% WI in the Europa prospect (also operated by Shell).
• 3.5% overriding royalty interest (ORRI) in Ursa.