Shell starts production from Kaikias Field in Gulf of Mexico

Shell starts production from Kaikias Field in Gulf of Mexico

Shell on Thursday announced it is beginning production at the Kaikias Field in the US Gulf of Mexico about a year ahead of plan, according to Reuters.

The field is located about 130 miles off of Louisiana in the Mars-Ursa basin in about 4,500 feet of water.

Shell, an 80% majority stakeholder in the development, reduced its costs by around 30% in order for the project to advance. With the cost savings Shell expects to be able to generate profit at $30 per barrel.

The field has four wells connected to Shell’s Ursa hub and the oil flows to shore through the Mars pipeline. Shell expects output to peak at 40,000 barrels per day.

The minority partner in Kaikias is Japan’s Mitsui with a 20% stake.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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