Mitsui buys 20% stake in Shell’s offshore oil fields in Gulf

Offshore staff

TOKYO – Japan’s Mitsui & Co. has agreed to buy a 20% stake in four blocks in the US Gulf of Mexico from Royal Dutch Shell Plc for an undisclosed amount, according to a Reuters report.

The move follows Mitsui’s other investment decisions earlier this year, including co-development of theGreater Enfield oil reserves off Western Australia and an $8-billion expansion of the Tangguh liquefied natural gas project in Indonesia, which is being led by BP.

In this latest deal, Mitsui Oil Exploration Co. will buy the 20% stake in four blocks in the Mississippi Canyon, located about 100 km (62 mi) south-southeast of New Orleans, from a Shell subsidiary.

The recoverable resources of all the blocks are estimated to be more than 100 MMboe.

Production of crude oil and gas would use the existing near field infrastructure, which could help early commercialization at lower development costs, the company said. Production could start as early as 2019, a Mitsui spokesman said.

12/05/2016