ConocoPhillips to sell interest in Gulf of Mexico assets to Shell for $735 million

ConocoPhillips will sell its interests in the Gulf of Mexico Ursa and Europa fields to Shell for $735 million, both companies confirmed today. ConocoPhillips continues to work towards a strategy of divesting noncore assets, while Shell looks to strengthen its deepwater portfolio.

Full-year 2024 production associated with the ConocoPhillips’ 15.96% interest in the Ursa Field and 1% interest in the Europa Field was approximately 8,000 barrels of oil equivalent per day (boed). The transaction is subject to customary closing conditions and is expected to be completed by the end of second quarter of 2025.

“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, Strategy, Commercial, Sustainability & Technology at ConocoPhillips.

This will increase Shell’s working interest (WI) in its operated Ursa platform, pipeline, and associated fields from 45.3884% to a maximum of 61.35%.

“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.”

Image courtesy of Shell