Shell issues FID for Kaikias waterflood project in US Gulf of Mexico

Shell Offshore Inc. says that it has taken a final investment decision (FID) on a waterflood project at its Kaikias field in what it calls “the US Gulf of America.”

The Kaikias waterflood project is estimated to increase recoverable resource volume by ~60 million metric barrels of oil equivalent (P50). The estimate of resources volumes is currently classified as 2P under the Society of Petroleum Engineers’ Resource Classification System.

Water will be injected to displace additional oil in the reservoir formation which supplies production to Shell’s Ursa platform in the Mars Corridor. First injection is expected in 2028 and is anticipated to extend the production lifecycle of the Ursa platform by several years.

The Kaikias field was discovered in August 2014 in more than 4,000 feet (1,219 meters) of water. It is located in the Mars-Ursa basin in Mississippi Canyon bocks 811 and 812, some 130 miles off the coast of Louisiana. Production began in May 2018 with a tieback to Shell’s Ursa platform.

Peter Costello, Shell’s Upstream President, said: “Following our decision to increase our stake in Ursa earlier this year, this additional investment continues to maximize the value of the asset. It also contributes to our aim of maximizing high-margin production and longevity in a core basin to maintain liquids production.”