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Shell Offshore launches its first project in the Gulf of Mexico since 2015 with the ambitious Kaikias project

The final investment decision for starting a joint-project named Kaikias has been taken by Shell Offshore Inc., subsidiary of Royal Dutch Shell, and MOEX North America, wholly owned subsidiary of Mistui Oil Exploration Co. 

Joining Shell’s on-going projects in the US Gulf of Mexico, Coulomb Phase 2 and Appolattox, Kaikias will be developed in two phases: the first one is expected to start production in 2019 and includes three wells, projected to produce up to 40,000 barrels of oil per day (boe/d) at peak rates.

With Shell owning 80% of working interest and MOEX NA owning the remaining 20% of working interest, expectations are high. Especially for Shell that hopes to increase its production to over 900,00 boe/d by 2020.

The Gulf of Mexico was formed about 300 million years ago and its basin has approximately 1.6 million km2. Surrounded by The United States’ coast on the north and northeast, Kaikas - named after the Greek God of the northeast wind - will take place in the Mars-Ursa Basin, located approximately 210 kilometres from the Louisiana coast. Specialists estimates that the area might contain over 100 million barrels of oil.

With infrastructure already in place, Kaikas offers a great and competitive opportunity with break-even price below US$40 per barrel. With a simple design and using the knowledge acquired with previous subsea project, they managed to reduce the total cost by 50%.

With operations starting soon, fulling comprehending ocean’s meteorological conditions are essential for developing a project of such magnitude. Open Ocean is an innovative company specialized on online decision-making solutions for industrial marine activities. Developer of Metocean Analytics, first online offer for metocean study on-demand, Open Ocean offers solutions combining scientific expertise and several technologies to deliver the most relevant metocean study for your offshore project. Please contact us to find out about our latest innovative approach in hurricane impact analysis for the Gulf of Mexico.