ConocoPhillips mulls Ursa exit in Gulf of Mexico
ConocoPhillips is considering the disposal of its non-operated stake in its Ursa oil and gas platform and Princess subsea well in the Gulf of Mexico's Mississippi Canyon, Reuters reported July 10.
The Ursa/Princess oil and gas concession produced 13,700 barrels of oil equivalent/day net to Conoco in 2021, according to the US major's website. Shell operates Ursa/Princess with a 45.4% stake, while Conoco owns 15.96% interest. BP rounds off the consortium as a 22.7% shareholder.
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A deal would complete Conoco's departure from US Gulf deepwater energy projects. Conoco has been downscaling its presence in the region to instead focus on its US shale operated stakes in the Permian basin, where production rates are more profitable.
Conoco is looking to offload between $4bn and $5bn in assets across its portfolio before the end of 2023.
The Princess deposit lies to the north of Ursa. Launched in 2002, it is currently tied back to the Ursa tension leg platform, which has been producing oil and gas since 1999. The Shell-run consortium subsequently backed Ursa/Princess with funding to implement a water injection system, boosting extraction rates and extending the field's operating life. The water injection system launched in 2008 and had a listed volume enhancement capacity of 30,000 barrels of oil equivalent/day, which was expected to extend the project's lifespan by 10 years.