Shell Assumes 100% Working Interest In US Gulf Of Mexico Kaikias Field

Shell Offshore Inc., a subsidiary of Shell plc (Shell), has acquired the 20% Working Interest (WI) of MOEX North America LLC (MOEX), a 100% subsidiary of Mitsui & Co., Ltd., in the Kaikias field in the US Gulf of Mexico. Shell now has 100% WI and remains the operator.

“Since its discovery, the Kaikias field has been a productive investment,” said Rich Howe, Shell’s Executive Vice President for Deep Water. “By increasing Shell’s working interest in the field, we are creating options for our future as the leading producer in the US Gulf of Mexico.”

This investment underscores Shell’s long-term commitment to the US Gulf of Mexico, where production is essential to ensuring a reliable and secure supply of energy. Additionally, production in the US Gulf of Mexico has among the lowest greenhouse gas (GHG) intensity for scope 1 and 2 in the world.

Shell and MOEX will submit for federal regulatory approval.

• The Kaikias field in the US Gulf of Mexico is a deep-water project that uses a subsea tieback to the nearby Ursa production hub.
• Shell discovered the Kaikias field in 2014. The field is located in the prolific Mars-Ursa basin, approximately 130 miles from the Louisiana coast. Production began in May 2018.
• The reference to Shell’s US Gulf of Mexico production being among the lowest GHG intensity in the world is a comparison among other IOGP oil-and gas-producing members.
• Shell is the leading operator in the US Gulf of Mexico for oil and gas production.

Shell’s net carbon intensity
Also, in this announcement we may refer to Shell’s “Net Carbon Intensity”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target
Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.