Shell approves Kaikias waterflood project to boost Gulf of Mexico production

Shell Offshore, a subsidiary of oil major Shell, has reached a final investment decision (FID) for a waterflood project at the Kaikias field in the US Gulf of Mexico. The project involves injecting water into the reservoir to displace additional oil toward production wells and re-pressurise the formation.

The Kaikias field, located approximately 130 miles (209 kilometres) off the coast of Louisiana, currently supplies production to the Ursa tension leg platform (TLP).

The waterflood initiative is expected to begin first injection in 2028 and is projected to increase recoverable resource volumes by approximately 60 million barrels of oil equivalent.

This secondary recovery method is anticipated to extend the production lifecycle of the Ursa platform by several years.

Peter Costello, Shell’s Upstream President, stated that the investment follows the company's decision to increase its stake in Ursa earlier this year. He noted that the project aligns with Shell's strategy to maximise high-margin production and longevity in core basins.

Shell operates the Ursa TLP with a 61.3 per cent interest, alongside partners BP Exploration and Production (22.7 per cent) and ECP GOM III (16 per cent).

The company stated it remains the leading deep-water operator in the region and aims to sustain global liquids production at 1.4 million barrels of oil equivalent per day until 2030.