Shell has given the green light to develop its Kaikias deepwater field in the United States Gulf of Mexico, the first such project the company has approved since Appomattox in July 2015. Located 130 miles offshore Louisiana, Kaikias is to start production in 2019 and expected to be profitable at oil prices lower than USD 40/bbl as a result of a simplified design that allowed costs to be slashed by 50%. The Shell-operated project will be tied into the company’s nearby Ursa production hub. Kaikias is estimated to contain more than 100 million BOE of recoverable resources and in its three-well first phase is anticipated to produce a peak 40,000 BOE/D. Shell holds an 80% interest in the project with the remaining interest held by Mitsui.
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