Japan's Mitsui & Co. has reached an agreement with Shell to acquire 20% working interest in the supermajor's 100%-operated Kaikias and Circius fields in the US Gulf of Mexico, the firm announced on 5 December.
The two fields sit in four blocks (MC-767, MC-768, MC-811 and MC-812) 100km south-southeast of New Orleans, in the Mississippi Canyon area, encompassing 93sq km. The fields have a water depth of approximately 1300m.
Production of crude oil and gas would utilize the existing near field infrastructure, presenting opportunities for early commercialization at reduced development costs, Mitsui said. The recoverable resources of the entire blocks are estimated to be over 100 MMboe.
In addition, there is further exploration potential within the blocks which may contribute to further build up the reserves and continue production over the long term, Mitsui said. "Together with Shell, Mitsui will continue to work through its subsidiary MOECO to ensure safe and reliable operations for the exploration and development," the company said.
In November 2015, Shell touted a 'major discovery' at the Kaikias exploration well, which it thought could surpass 100 MMboe. Shell discovered Kaikias in August 2014, and appraisal drilling revealed more than 300ft of net oil pay in August 2015.