Shell Acquires ConocoPhillips’ Interests in Ursa and Europa Assets in the Gulf of America

Shell Offshore and Shell Pipeline Company (SPLC), subsidiaries of the UK-headquartered energy giant Shell, have made a significant move by acquiring interests held by U.S. oil major ConocoPhillips in its assets in the Gulf of America (formerly Gulf of Mexico).

ConocoPhillips has agreed to sell its interests in the Ursa and Europa assets, including Ursa Oil Pipeline Company and an overriding royalty interest in the Ursa field, to Shell for $735 million. The proceeds from this transaction will be used by ConocoPhillips for general corporate purposes.

Andy O’Brien, Senior Vice President of Strategy, Commercial, Sustainability & Technology at ConocoPhillips, stated: “This transaction reflects our commitment to strengthen our portfolio by divesting noncore assets and progress towards our $2 billion disposition target.”

The divestment includes ConocoPhillips’ 15.96% interest in the Ursa field and 1% interest in the Europa field, which accounted for approximately 8,000 barrels of oil equivalent per day in full-year 2024 production. The transaction is expected to be completed by the end of the second quarter of 2025.

With an effective date of January 1, 2025, Shell will increase its stake in the assets, raising its working interest in the Ursa tension-leg platform (TLP) and associated fields from 45.3884% to a maximum of 61.35%. BP Exploration & Production and ECP GOM III hold the remaining stakes in the offshore platform.

Shell will also acquire ConocoPhillips’ membership interest in the Ursa Oil Pipeline Company, a 1% WI in the Europa prospect, and a 3.5% overriding royalty interest in Ursa. This strategic move aligns with Shell’s focus on secure energy supplies and high-margin investments.

Zoë Yujnovich, Shell’s Integrated Gas & Upstream Director, highlighted: “This targeted investment unlocks more value from our existing advantaged assets and infrastructure, providing robust free cash flow and growth opportunities.”

The Ursa TLP, located in the Mars Basin southeast of New Orleans, has been a productive asset for over 25 years, producing over 800 million barrels of oil equivalent. Shell’s increased working interest in Ursa signifies its commitment to sustainable energy production.

While rumors of a potential merger with BP circulated, Shell clarified that it is focused on maximizing value from its current assets and considers its own shares as an attractive investment opportunity. The company remains dedicated to efficient and profitable upstream investments.