SHERIDAN, WYOMING – Feb. 23, 2025 – Shell Offshore Inc. and Shell Pipeline Company (SPLC), subsidiaries of Shell plc (Shell), have announced an agreement to increase their working interest in the Ursa platform located in the Gulf of America. This strategic move solidifies Shell’s commitment to its advantaged Upstream assets and infrastructure.
Expanding Shell’s Operational Footprint
The agreement will see Shell’s working interest (WI) in the operated Ursa platform, pipeline, and associated fields rise from 45.3884% to a maximum of 61.35%. This increase follows an agreement to acquire 15.96% WI from ConocoPhillips Company (COP). “This targeted investment is the latest example of how we are unlocking more value from our existing advantaged Upstream assets and infrastructure,” said Zoë Yujnovich, Shell’s Integrated Gas & Upstream Director. “The acquisition expands our ownership in an established long-producing asset that generates robust free cash flow, while also providing more options for growth.”
Strategic Acquisition Details
The transaction encompasses several key elements:
- 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, acquired through the Marathon Oil Corporation merger in November 2024.
It is important to note that the increase to a maximum of 61.35% WI is subject to preferential rights election by other WI partners.
Ursa Platform: A Proven Asset
The Ursa Tension-Leg Platform (TLP), which began production in 1999, is located approximately 130 miles (209 kilometres) southeast of New Orleans within the Mars Basin, a highly productive hydrocarbon region. The Ursa/Princess field has produced over 800 million barrels of oil equivalent total gross over approximately 25 years, demonstrating its reliability and potential for continued growth.
Commitment to Efficient and Sustainable Operations
Shell emphasizes its focus on secure domestic energy supplies and high-margin, energy-efficient Upstream investments. “The Gulf of America production has among the lowest greenhouse gas intensity in the world. Increasing our working interest in Ursa demonstrates our continued focus on providing secure supplies of domestic energy and pursuing the highest margin and most energy-efficient Upstream investments.”
Shell US is a leading deep-water operator and one of the largest leaseholders in the Gulf of America (GoA), concentrating on opportunities close to existing assets in prolific corridors. The reference to GoA production having among the lowest greenhouse gas intensity globally is based on a comparison among members of the International Association of Oil & Gas Producers.
Regulatory and Closing Conditions
The completion of this deal is subject to regulatory clearance, preferential rights election, and other closing conditions. It is anticipated that the transaction will be finalized by the end of Q2 2025.
Forward-Looking Statements and Cautionary Notes
This press release contains forward-looking statements concerning Shell’s financial condition, results of operations, and businesses. These statements are based on current expectations and assumptions, which involve risks and uncertainties that could cause actual results to differ materially. Factors such as price fluctuations in crude oil and natural gas, changes in demand, currency fluctuations, and regulatory developments may affect future operations.
Readers are advised not to place undue reliance on forward-looking statements. Additional risk factors are detailed in Shell plc’s Form 20-F for the year ended December 31, 2023, available on the SEC website.
Shell’s Commitment to Net Carbon Intensity and Net-Zero Emissions
Shell’s “Net Carbon Intensity” (NCI) encompasses emissions from production, suppliers, and customers. The company’s operating plans reflect Scope 1, Scope 2, and NCI targets for the next ten years. While Shell aims for net-zero emissions by 2050, this target is currently outside the planning period and depends on societal progress.
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