(World Oil)– Shell plc has taken a final investment decision (FID) on a waterflood project at its Kaikias field in the U.S. Gulf of America, marking a new phase of secondary recovery aimed at extending production from the Ursa hub.
Shell Offshore Inc. said the Kaikias waterflood project will involve injecting water into the reservoir to displace additional oil toward existing production wells while restoring reservoir pressure. First water injection is expected in 2028, with the project anticipated to extend the producing life of the Ursa platform by several years.
The Kaikias field, discovered in 2014 in more than 4,000 ft of water, has been producing since 2018 via a subsea tieback to Ursa, one of the longest-producing deepwater hubs in the Mars Corridor. Shell holds a 100% working interest in Kaikias and is operator of the Ursa tension-leg platform.
According to the company, the waterflood project is expected to add approximately 60 million barrels of oil equivalent (P50) in recoverable resources, currently classified as 2P under the Society of Petroleum Engineers’ resource classification system. The initiative follows Shell’s earlier decision to increase its ownership stake in Ursa, reinforcing its strategy of maximizing value from existing infrastructure in core deepwater assets.
“Following our decision to increase our stake in Ursa earlier this year, this additional investment continues to maximize the value of the asset,” said Peter Costello, Shell’s upstream president. He added that the project supports Shell’s focus on high-margin production and extending asset life in the U.S. Gulf of America.
Shell is one of the leading deepwater operators in the region and has stated that its U.S. Gulf production ranks among the lowest greenhouse gas–intensity barrels globally. As outlined at the company’s 2025 Capital Markets Day, Shell aims to sustain liquids production at around 1.4 million boed through 2030.
The Kaikias waterflood underscores a broader industry trend toward secondary recovery projects in mature deepwater fields, leveraging existing hubs and infrastructure to deliver additional barrels with competitive breakeven costs.
