Shell Offshore Inc. and Shell Pipeline Company (SPLC), both subsidiaries of Shell plc, have finalized an agreement to significantly increase their ownership in the Ursa Tension-Leg Platform (TLP) located in the prolific Gulf of Mexico. The transaction, initially announced earlier this year, sees Shell’s working interest in the Ursa platform rise from 45.3884% to a controlling 61.3484%.

The Ursa platform, now majority-owned and operated by Shell, is a crucial asset in the Gulf of Mexico. Following the completion of this agreement, the remaining working interests in the Ursa platform are held by BP Exploration & Production Inc. with 22.6916% and ECP GOM III, LLC with 15.96%.

Beyond the increased stake in the platform itself, the transaction also encompasses key midstream infrastructure. Shell Pipeline Company LLC (SPLC) has acquired an 11.81% membership interest in the Shell-operated Ursa Oil Pipeline Company LLC from ConocoPhillips. Following adjustments due to preferential rights exercised by other partners, Shell’s working interest in the Ursa oil pipeline has increased from 45.39% to a substantial 57.20%. This enhanced ownership in the pipeline will provide Shell with greater control and integration of the transportation of crude oil from the Ursa field.

Furthermore, the agreement includes a 1% working interest in the Europa prospect, which is also operated by Shell, and a 3.5% Overriding Royalty Interest (ORRI) in the Ursa development. These additional assets further solidify Shell’s footprint and potential in the region.

This acquisition aligns perfectly with Shell’s broader strategy in the U.S. Gulf of Mexico, where it stands as the leading deep-water operator and the largest producer of oil and gas. The company’s focus remains on opportunities situated near its existing infrastructure within the most productive corridors of the Gulf. By concentrating on such areas, Shell can leverage its existing expertise, resources, and logistical advantages to optimize production and efficiency.

In an evolving energy landscape, maintaining a strong position in reliable and profitable oil and gas assets remains a key component of Shell’s energy transition strategy, providing crucial cash flow to fund investments in lower-carbon solutions. The Ursa platform has a proven track record of production, and this increased ownership positions Shell to capitalize on its future potential.

The Gulf of Mexico continues to be a vital region for energy production in the United States, and Shell’s increased investment in the Ursa platform and associated infrastructure underscores its long-term commitment to this strategic area. This acquisition is expected to contribute significantly to Shell’s production and operational stability in the years to come.