Shell will buy ConocoPhillips’ interests in the offshore Ursa and Europa fields in the Gulf of Mexico for $735 million as Shell beefs up its deepwater portfolio and Conoco works toward divestment goals, the companies announced Feb. 21.

Shell is acquiring ConocoPhillips’ 15.96% working interest (WI) in the Ursa Field and 1% interest in the Europa Field. ConocoPhillips’ full-year 2024 production from the assets was approximately 8,000 boe/d. Shell is also buying Conoco’s 3.5% overriding royalty interest from its recent merger with Marathon Oil as part of the deal.

In addition, Shell Pipeline is acquiring Conoco’s 15.96% membership interest in the Shell-operated Ursa Oil Pipeline Co.

The deal increases Shell's WI in its operated Ursa platform, pipeline and associated fields from 45.3884% to a maximum of 61.35%. Other owners of the Ursa tension-leg platform include BP (22.69% WI) and ECP GOM III LLC (15.96%).

The Ursa TLP began production in 1999 and is located approximately 130 miles (209 km) southeast of New Orleans within the Mars Basin of the Gulf of Mexico, which was recently named the Gulf of America by U.S. President Trump.

“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.”

ConocoPhillips’ proceeds from the transaction will go towards general corporate purposes, according to ConocoPhillips’ press release.

“Combined with previously announced dispositions, this transaction reflects our ongoing commitment to further strengthen our portfolio by divesting noncore assets and shows significant progress toward our $2 billion disposition target,” said Andy O’Brien, senior vice president of strategy, commercial, sustainability and technology for ConocoPhillips.

The transaction remains subject to customary closing conditions and is expected to be completed by the second quarter of 2025. The effective date of the transaction is Jan. 1.

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