Royal Dutch Shell has given the nod for a subsidiary to go ahead with a joint venture deep-water project in the Gulf of Mexico.
The subsidiary Shell Offshore and its partner MOEX North America, which is a subsidiary of Mitsui Oil Exploration, will develop the Kaikias oil and gas field about 210km off the Louisiana coast.
Work on the first of two phases will begin in 2019. Shell’s announcement marks the first time it has given final investment approval to an oil and gas project since 2015.
Shell has an 80% stake in Kaikias while MOEX holds the other 20%.
Kaikias is estimated to hold more than 100 million barrels of recoverable oil and gas.