Shell Offshore Inc. started production from Phase 1 of the Kaikias deepwater project in the US Gulf of Mexico, a year ahead of schedule.
Kaikias, in the Mars-Ursa basin 130 miles offshore Louisiana, is owned by Shell (80% working interest), as operator, and MOEX North America LLC (20% working interest), a wholly owned subsidiary of Mitsui Oil Exploration Co. Ltd. Estimated peak production is 40,000 boe/d.
Shell took financial investment decision in February 2017 and has reduced costs by about 30%, lowering the forward-looking, break-even price to less than $30/bbl (OGJ Online, Feb. 28, 2017).
Shell discovered Kaikias in August 2014. The development, in 4,500 ft of water, sends production from its four wells to the Shell-operated (45%) Ursa hub, which is co-owned by BP PLC (23%), ExxonMobil Corp. (16%), and ConocoPhillips (16%). From the Ursa hub, volumes ultimately flow into the Mars oil pipeline.
