Shell invests in Kaikias waterflood to unlock production in Gulf of America

Shell Offshore Inc., a unit of Shell plc, has approved a final investment decision for a waterflood development at the Kaikias field in the US Gulf of America. The project will involve injecting water into the reservoir to enhance oil recovery, supporting continued production to Shell’s Ursa platform in the Mars Corridor.

Waterflooding is a secondary recovery technique in which injected water pushes remaining oil toward nearby production wells while restoring reservoir pressure. Initial water injection is targeted for 2028 and is expected to prolong the operational life of the Ursa field by several years.

Commenting on the development, Shell’s Upstream President Peter Costello said the investment builds on the company’s earlier decision this year to increase its interest in Ursa, helping to further unlock the asset’s value. He added that the project supports Shell’s strategy to sustain high-margin output and extend production longevity within a key basin, ensuring continued liquids production.

Shell remains the leading deep-water operator in the US Gulf of America, with operations that rank among the lowest in greenhouse gas intensity globally.