Shell plc is set to significantly increase its ownership in the Ursa platform, a key asset in the Gulf of America, through an agreement signed by its subsidiaries Shell Offshore Inc. and Shell Pipeline Company (SPLC).
The deal will boost Shell’s working interest in the Ursa platform, pipeline, and associated fields from 45.3884 per cent to a maximum of 61.35 per cent, pending regulatory approvals and other conditions.
The expansion comes as Shell acquires a 15.96 per cent working interest from ConocoPhillips Company (COP) in a transaction valued at US$735 million.
This strategic move not only strengthens Shell’s position in the Gulf of America but also aligns with the company’s focus on high-margin, energy-efficient upstream investments.
Zoë Yujnovich, Shell’s Integrated Gas & Upstream Director, emphasised the significance of this acquisition, stating: “This targeted investment is the latest example of how we are unlocking more value from our existing advantaged upstream assets and infrastructure.
“The acquisition expands our ownership in an established long-producing asset that generates robust free cash flow, while also providing more options for growth.”
The deal encompasses more than just the Ursa platform stake.
It includes ConocoPhillips‘ 15.96 per cent membership interest in the Shell-operated Ursa Oil Pipeline Company LLC, a 1 per cent working interest in the Europa prospect, and a 3.5 per cent Overriding Royalty Interest in Ursa.
Shell highlights that production in the Gulf of America boasts one of the lowest greenhouse gas intensities worldwide, underscoring the company’s commitment to environmentally responsible energy production.
The Ursa Tension-Leg Platform, which began operations in 1999, is located approximately 1.61 kilometres southeast of New Orleans in the prolific Mars Basin.
The transaction is expected to conclude by the end of the second quarter of 2025, subject to regulatory clearances and other closing conditions.
This acquisition reinforces Shell’s position as a leading deep-water operator and one of the largest leaseholders in the Gulf of America, focusing on opportunities near existing assets in the most productive corridors.
With the Ursa/Princess field having already produced over 800 million barrels of oil equivalent in its 25-year history, this increased stake offers Shell enhanced production reliability and growth potential in a well-established asset.
