Shell Offshore Inc. and Shell Pipeline Company (SPLC), subsidiaries of Shell, have completed the previously announced agreement to increase their stake in the Ursa platform in the Gulf of America from 45.3884% to 61.3484%.
This acquisition is part of Shell’s strategy to invest in profitable and carbon-competitive oil and gas projects with a strong integrated value chain.
Deepening Shell’s interest in existing assets also contributes to maintaining stable liquids production from its advantaged Upstream business.
Background
- Shell is the operator of Ursa Tension-Leg Platform (TLP) and 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 Company 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.
- Shell US is the leading deep-water operator and the largest producer of oil and gas in the Gulf of America, focused on opportunities close to its existing assets in the most prolific corridors.
Source: Shell
