Shell has agreed to sell a package of Gulf of America oil and gas assets for $1.7 billion, continuing its strategy of reshaping its upstream portfolio while focusing on higher-value production.

 

The deal will see Shell Offshore Inc., a subsidiary of Shell plc, sell its 50% non-operated working interest in the Na Kika platform and associated fields, along with its 100% interest in the Coulomb tieback, to subsidiaries of Talos Energy and Ridgewood Energy.

 

“The Gulf of America is one of our highest-value basins, and we are actively shaping our portfolio to ensure our Upstream business continues to be resilient and increasingly competitive,” said Peter Costello, Shell’s Upstream President. “We remain focused on sustaining our material liquids production into the next decade.”

 

The transaction is effective from July 1, 2025, and is expected to close by the end of 2026.

 

Despite the sale, Shell said it remains committed to its deep-water business, describing it as a core competitive advantage. The company said it is the only international oil major with a leading portfolio in both the Gulf of America and Brazil, which it identified as two of the world's highest-margin and lowest-carbon production basins.

 

The agreement includes additional upside for Shell, with the company set to receive uncapped upside-linked payments through 2027 as well as overriding royalty interests on production from future Na Kika tiebacks, subject to agreed conditions.

 

Shell's entitlement production from the assets averaged 37,000 barrels of oil equivalent per day in 2025, although the company said its modelling indicates Na Kika and Coulomb will not be significant contributors to production by 2030.

 

As part of the transaction, the buyers will assume certain decommissioning obligations and provide financial security for those liabilities. Shell Trading US Company will also retain rights to offtake production from the assets under negotiated agreements.

 

The Na Kika semi-submersible platform, Shell's only non-operated platform in the Gulf of America, began production in 2003, while the Coulomb tieback started producing in 2005. BP, which operates Na Kika, retains the remaining 50% working interest and holds a preferential right to purchase Shell's stake within 30 days of notification under the terms of the sale agreement.