Shell Expands Stake in Ursa Platform in Gulf of America, Enhancing Energy Production and Growth Potential

Shell Expands Stake in Ursa Platform in Gulf of America, Enhancing Energy Production and Growth Potential

(IN BRIEF) Shell Offshore Inc. and Shell Pipeline Company (SPLC) have entered into an agreement to increase their stake in the Ursa platform and its associated fields in the Gulf of America. This move will raise Shell’s working interest from 45.39% to 61.35%, expanding their role in a long-producing asset known for its low greenhouse gas emissions and robust free cash flow.

(PRESS RELEASE) LONDON, 22-Feb-2025 — /EuropaWire/ — Shell Offshore Inc. and Shell Pipeline Company (SPLC), both subsidiaries of Shell plc, have announced a strategic agreement to increase their stake in the Ursa platform in the Gulf of America. The acquisition will elevate Shell’s working interest (WI) in the operated Ursa platform, pipeline, and related fields from 45.3884% to 61.35%, following the purchase of a 15.96% WI from ConocoPhillips Company (COP).

“This acquisition is a key example of our ability to unlock additional value from our existing, high-quality Upstream assets and infrastructure,” said Zoë Yujnovich, Shell’s Integrated Gas & Upstream Director. “The Ursa platform is a well-established, long-producing asset that generates strong free cash flow. This investment strengthens our position while providing more opportunities for future growth.”

The Gulf of America, where Ursa is located, has some of the lowest greenhouse gas emissions in the world. By increasing its stake in Ursa, Shell underscores its commitment to ensuring reliable domestic energy supplies while prioritizing high-margin, energy-efficient investments in its Upstream portfolio.

The transaction, which is contingent on regulatory approval, preferential rights elections, and other closing conditions, is expected to be finalized by the end of Q2 2025.

Notes to Editors:
Shell operates the Ursa Tension-Leg Platform (TLP), which began production in 1999. Currently, Shell holds a 45.3884% working interest, with BP Exploration & Production Inc. holding 22.6916%, ECP GOM III, LLC and ConocoPhillips each holding 15.96%.

The transaction also includes:

• COP’s 15.96% membership interest in the Shell-operated Ursa Oil Pipeline Company LLC, which will be transferred to Shell Pipeline Company.
• COP’s 1% WI in the Europa prospect, also operated by Shell.
• COP’s 3.5% Overriding Royalty Interest (ORRI) in Ursa, which COP acquired through its merger with Marathon Oil Corporation in November 2024.

The Ursa/Princess field, located approximately 130 miles southeast of New Orleans in the Mars Basin, is one of the most prolific hydrocarbon basins in the world. Since its inception, the field has produced over 800 million barrels of oil equivalent, providing Shell with consistent production and future growth opportunities.

Shell is a leading deep-water operator in the Gulf of America, with a significant leaseholding in one of the most active hydrocarbon corridors globally. The company is committed to reducing its environmental impact while expanding its energy production capacity.

Notes to editors

• Shell is the operator of Ursa Tension-Leg Platform (TLP) and currently holds a 45.3884% working interest (WI) ownership in the asset with BP Exploration & Production Inc. (22.6916% WI), ECP GOM III, LLC (15.96%) and ConocoPhillips Company (COP) (15.96% WI).

The transaction also includes:

• COP’s 15.96% membership interest in the Shell-operated Ursa Oil Pipeline Company LLC, which will be held by Shell Pipeline Company.
• COP’s 1% WI in the Europa prospect (also operated by Shell).
• COP’s 3.5% Overriding Royalty Interest (ORRI) in Ursa. This royalty interest was acquired by COP through the Marathon Oil Corporation merger, which was completed in November 2024.
• Reference to an increase in WI to a maximum of 61.35% is subject to preferential rights election by other WI partners.
• The Ursa TLP, which began production in 1999, is located approximately 130 miles (209 kilometres) southeast of New Orleans within the Mars Basin, one of the most prolific hydrocarbon basins in the world.
• The Ursa/Princess field is well established, having produced more than 800 million barrels of oil equivalent total gross over ~25 years, providing Shell with reliable production and growth opportunities.
• Shell US is the leading deep-water operator and one of the largest leaseholders in the Gulf of America (GoA), focused on opportunities close to our existing assets in the most prolific corridors.
• The reference to our GoA production having among the lowest greenhouse gas intensity in the world is a comparison among other members of the International Association of Oil & Gas Producers.

Cautionary note

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SOURCE: SHELL