Shell greenlights US Gulf waterflood project to boost oil recovery

LONDON, Dec 16 (Reuters) - Oil major Shell SHEL.L has taken a final investment decision on a waterflood project at its Kaikias field in the U.S. Gulf of Mexico, aiming to boost oil recovery and extend the life of its Ursa platform.

The project is expected to add 60 million barrels of oil equivalent to recoverable resources.

It is the latest investment in the U.S. Gulf for Shell, the region's top deep-water operator, as it seeks to sustain liquids output near 1.4 million barrels of oil equivalent per day until 2030.

First injection for the project is slated for 2028 and is due to extend Ursa's production lifecycle by several years.

Waterflood is a secondary recovery technique that injects water into the reservoir to displace additional oil and re-pressurize the formation.

Shell operates Ursa, a tension-leg platform in the Mars Corridor, and holds a 61.3% stake alongside BP and ECP GOM III. Shell announced in February it had grown its working interest in the Ursa platform.

Kaikias, discovered in 2014 and producing since 2018, lies in more than 4,000 feet (1,219 metres) of water about 130 miles (209 km) off Louisiana.