Shell Offshore, a subsidiary of Shell, has taken a final investment decision (FID) on a waterflood project at its Kaikias field in the Gulf of America, aiming to boost its recoverable resources.
Water will be injected to displace additional oil in the reservoir formation which supplies production to Shell’s Ursa platform in the Mars Corridor.
The Kaikias waterflood project is estimated to increase recoverable resource volume by approximately 60 million metric barrels of oil equivalent (P50). The estimate of resources volumes is currently classified as 2P under the Society of Petroleum Engineers’ Resource Classification System.
Waterflood is a method of secondary recovery where the injected water physically sweeps the displaced oil to adjacent production wells, while re-pressurizing the reservoir. First injection is expected in 2028 and is anticipated to extend the production lifecycle of Ursa by several years.
“Following our decision to increase our stake in Ursa earlier this year, this additional investment continues to maximize the value of the asset.
“It also contributes to our aim of maximizing high-margin production and longevity in a core basin to maintain liquids production,” said Peter Costello, Shell’s Upstream President.
In August 2014, the 100% Shell-owned Kaikias field was discovered in more than 4,000 feet (1,219 meters) of water, approximately 130 miles (209 kilometers) off the coast of Louisiana.
Production from the field began in May 2018 with flowback to Shell’s Ursa platform.
Shell is the operator of the Ursa Tension Leg Platform and holds 61.3484% ownership in the asset with BP Exploration & Production 22.6916% and ECP GOM III 15.96%. In February, Shell announced its acquisition of additional working interest in Ursa.