NEWS
Acquisition of Interest in offshore fields in the Gulf of Mexico
December 5, 2016
Project
Mitsui Oil Exploration Co., Ltd. ("MOECO", Head Office: Tokyo, President and CEO: Mitsuo Hidaka) is pleased to announce that it has reached an agreement with Shell Offshore Inc., ("Shell"), a subsidiary of Royal Dutch Shell plc , to acquire 20% working interest of Shell's Kaikias and Circius 100% owned assets located in four blocks in the Mississippi Canyon in the Gulf of Mexico through MOEX North America LLC ("MOEX NA", wholly owned subsidiary of MOECO).
The four blocks, encompassing 93km2, are located approximately 100 kilometers south-southeast of New Orleans, offshore Louisiana. Production of crude oil and gas would utilize the existing near field infrastructure, presenting opportunities for early commercialization at reduced development costs. The recoverable resources of the entire blocks are estimated to be over 100 million barrels of oil equivalent. In addition, there is further exploration potential within the blocks which may contribute to further build up the reserves and continue production over the long term. Together with Shell, MOECO will continue to work through MOEX NA to ensure safe and reliable operations for the exploration and development.
MOECO will pursue to accumulate cost competitive reserves by taking advantage of current market conditions.
Outline of Agreement
|
Buyer |
MOEX North America LLC |
|
Seller |
Shell Offshore Inc. (wholly owned subsidiary of Royal Dutch Shell plc) |
|
Acquisition |
20% working interest in four blocks in the Gulf of Mexico |
Asset Overview
|
Asset |
Outer Continental Shelf lease blocks in the Gulf of Mexico |
|
Location |
Approx. 100 kilometers south-southeast of New Orleans |
|
Water Depth |
Approx. 1,300m |
|
Recoverable |
Over 100 million barrels of oil equivalent |