Shell Offshore and Shell Pipeline Company, subsidiaries of Shell, have signed an agreement with ConocoPhillips to acquire a 15.96% working interest in the Ursa platform, pipeline and associated fields in the Gulf of Mexico for $735m (£581.55m).
This transaction will increase Shell's working interest from 45.39% to a maximum of 61.35%, contingent upon the decision of other working interest partners.
ConocoPhillips will also sell a 1% interest in the Europa prospect, operated by Shell, and a 3.5% overriding royalty interest in Ursa, acquired through the Marathon Oil merger in November 2024.
The sale is part of ConocoPhillips' strategy to divest non-core assets and reduce debt following the Marathon Oil transaction, reported Reuters.
In 2024, ConocoPhillips’ 15.96% stake in the Ursa field and 1% in the Europa field yielded around 8,000 barrels of oil equivalent per day.
The completion of the transaction is expected by the end of the second quarter of 2025, with an effective date of 1 January 2025.
ConocoPhillips Strategy, Commercial, Sustainability & Technology senior vice-president Andy O’Brien said: “Combined with previously announced dispositions, this transaction reflects our ongoing commitment to further strengthen our portfolio by divesting noncore assets and shows significant progress toward our $2bn disposition target.”
The Ursa tension-leg platform, which began production in 1999, is situated approximately 130 miles south-east of New Orleans in the Mars Basin.
The Ursa/Princess field's total gross production amounts to more than 800 million barrels of oil equivalent (mboe) over approximately 25 years.
Shell Integrated Gas & Upstream director Zoë Yujnovich said: "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."
