Subsidiaries of the companies—Shell Offshore Inc. and MOEX North America—have made a final investment decision agreeing to proceed with the first phase of the project described by Shell as “an attractive near-field opportunity with a competitive go-forward breakeven price below $40 per barrel.”Located in the Mars-Ursa Basin, Kaikias is believed to hold more than an estimated 100 million barrels of oil equivalent (boe) of recoverable resources, according to Shell. Costs for the development, which is operated by Shell with an 80% working interest, were not disclosed. MOEX holds a 20% interest in the development.The first phase of the planned two-phase project includes producing oil and gas from three wells tied back to Ursa via a flowline. At its peak, each well is designed to produce up to 40,000 boe/d, Shell said.
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