Shell Offshore Inc., a subsidiary of Shell plc, has announced the final investment decision for a water injection project at its offshore Kaikias field, located in the Gulf of America. The initiative aims to increase recoverable oil volumes by reinjecting water into the reservoir formation supplying the Ursa platform, situated within the Mars production corridor.
Aiming for extended high-margin output
This secondary recovery method, known as waterflood, involves injecting water to push oil towards production wells while re-pressurising the reservoir. Shell plans to begin water injection in 2028, with the operation expected to extend the productive life of the Ursa facility by several years. The company estimates the recovery of an additional 60 million barrels of oil equivalent, classified as 2P reserves according to the Society of Petroleum Engineers’ standards.
Peter Costello, Shell’s Upstream President, stated that this new investment follows the earlier increase in Shell’s stake in Ursa and is intended to maximise high-value oil production in a strategic basin while ensuring sustained output.
Kaikias, a fully owned Shell asset
Discovered in 2014 at a depth of over 1,200 metres and approximately 209 kilometres off the Louisiana coast, the Kaikias field is 100% owned by Shell. Commercial production began in 2018, with direct tie-back to the Ursa platform. Shell also operates the Ursa facility, holding a majority stake of 61.3484%, alongside BP Exploration & Production Inc. (22.6916%) and ECP GOM III, LLC (15.96%).
The project aligns with Shell’s objectives announced at its 2025 Capital Markets Day, where the group committed to maintaining liquids production at around 1.4 million barrels of oil equivalent per day through 2030.
