Shell Offshore Inc. and MOEX North America LLC have each taken the final investment decision to execute phase one of the deepwater Kaikias project in the US Gulf of Mexico.
Kaikias has a competitive go-forward break-even price below $40/bbl, according to Shell.
The wells are designed to produce up to 40,000 boe/d.
Discovered in August 2014, Kaikias is located in about 4,575 ft (1,395 m) of water in the Mars-Ursa basin about 130 mi (210 km) offshore Louisiana. It is estimated to contain more than 100 MMboe recoverable resources.
Shell, a subsidiary of Royal Dutch Shell plc, is the operator and has an 80% working interest. Mitsui Oil Exploration Co. Ltd., has the remaining 20% working interest.
In addition, two other Shell-operated projects in the Gulf of Mexico are currently under construction or undergoing pre-production commissioning: Coulomb & Appomattox.