Shell to grow working interest in the Ursa platform in Gulf of America

HOUSTON, Feb. 22, 2025 /PRNewswire/ -- Shell Offshore Inc. and Shell Pipeline Company (SPLC), subsidiaries of Shell plc (Shell), have signed an agreement to increase their stake in the Ursa platform in the Gulf of America. This will increase Shell's working interest (WI) in its operated Ursa platform, pipeline, and associated fields from 45.3884% to a maximum of 61.35%, following an agreement to acquire 15.96% WI from ConocoPhillips Company (COP).

"This targeted investment is the latest example of how we are unlocking more value from our existing advantaged Upstream assets and infrastructure," said Zoë Yujnovich, Shell's Integrated Gas & Upstream Director. "The acquisition expands our ownership in an established long-producing asset that generates robust free cash flow, while also providing more options for growth."

The Gulf of America production has among the lowest greenhouse gas intensity in the world. Increasing our working interest in Ursa demonstrates our continued focus on providing secure supplies of domestic energy and pursuing the highest margin and most energy-efficient Upstream investments.

This deal is subject to regulatory clearance, preferential rights election and closing conditions. The deal is expected to be completed by end Q2 2025.

Notes to editors

• Shell is the operator of Ursa Tension-Leg Platform (TLP) and currently holds a 45.3884% working interest (WI) ownership in the asset with BP Exploration & Production Inc. (22.6916% WI), ECP GOM III, LLC (15.96%) and ConocoPhillips Company (COP) (15.96% WI).

The transaction also includes:

• • COP's 15.96% membership interest in the Shell-operated Ursa Oil Pipeline Company LLC, which will be held by Shell Pipeline Company.
  • COP's 1% WI in the Europa prospect (also operated by Shell).
  • COP's 3.5% Overriding Royalty Interest (ORRI) in Ursa. This royalty interest was acquired by COP through the Marathon Oil Corporation merger, which was completed in November 2024.

• Reference to an increase in WI to a maximum of 61.35% is subject to preferential rights election by other WI partners.
• The Ursa TLP, which began production in 1999, is located approximately 130 miles (209 kilometres) southeast of New Orleans within the Mars Basin, one of the most prolific hydrocarbon basins in the world.
• The Ursa/Princess field is well established, having produced more than 800 million barrels of oil equivalent total gross over ~25 years, providing Shell with reliable production and growth opportunities.
• Shell US is the leading deep-water operator and one of the largest leaseholders in the Gulf of America (GoA), focused on opportunities close to our existing assets in the most prolific corridors.
• The reference to our GoA production having among the lowest greenhouse gas intensity in the world is a comparison among other members of the International Association of Oil & Gas Producers.

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Forward-looking Statements

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Shell's Net Carbon Intensity

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Shell's net-zero emissions target

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Forward-looking non-GAAP measures

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SOURCE Shell Offshore Inc.; Shell Pipeline Company