Shell PLC (NYSE:SHEL) stock fell Tuesday, pressured by easing oil prices on renewed Russia-Ukraine ceasefire hopes and softer natural gas markets amid forecasts for warmer-than-expected weather.
In other news, the company’s subsidiary made a final investment decision (FID) on a waterflood project at its Kaikias field in the U.S. Gulf of America.
Project Details
The project will inject water to enhance oil recovery from the reservoir that supplies production to Shell’s Ursa platform in the Mars Corridor.
Also Read: Shell Drags Venture Global To New York Supreme Court Over Disputed LNG Contracts
Notably, Waterflooding is a secondary recovery method in which injected water pushes displaced oil toward nearby production wells while maintaining reservoir pressure.
The company expects first injections in 2028, extending the Ursa platform’s production life by several years.
Kaikias Field History
The Kaikias field, 100% owned by Shell, was discovered in 2014 in over 4,000 feet of water, 130 miles off Louisiana, with production starting in 2018 to Shell’s Ursa platform.
Shell operates Ursa with a 61.35% stake, alongside BP (22.69%) and ECP GOM III (15.96%), and recently increased its working interest.
The Kaikias waterflood project is expected to add ~60 million barrels of oil equivalent to recoverable resources.
As disclosed earlier, Shell plans to sustain liquids production at 1.4 million barrels of oil equivalent per day through 2030.
Recent Events
Recently, Shell has finalized a deal with Equinor ASA (NYSE:EQNR) to merge their U.K. offshore oil and gas operations into a new company called Adura.
Also, the company’s subsidiary, Shell International Trading Middle East Limited FZE, penned a 15-year deal with Abu Dhabi National Oil Company (ADNOC).
SHEL Price Action: Shell shares were down 2.21% at $70.63 at the time of publication on Tuesday, according to Benzinga Pro data.
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