Mitsui & Co., Ltd. ("Mitsui") is pleased to announce that Shell Offshore Inc., (“Shell”), a subsidiary of Royal Dutch Shell plc, and MOEX North America LLC (“MOEX NA”), wholly owned subsidiary of Mitsui Oil Exploration Co., Ltd. (a subsidiary of Mitsui in which Mitsui has 74.27% equity interest), have each taken the final investment decision to execute phase one of the Kaikias deep-water project in the US Gulf of Mexico, after announcing participation in the project in December 2016.
This project will utilize a subsea tie-back to the nearby Shell operated Ursa oil and gas production hub, presenting safe and unique opportunities for early commercialization at reduced development costs.
The project will be developed in two phases with phase one expected to start production in 2019. The first phase of development includes three wells, which are designed to produce up to 40,000 barrels of oil equivalent per day (boe/d) at peak rates.
Together with Shell, Mitsui will continue to work through MOEX NA to ensure safe and reliable operations for the exploration and development.
Energy and mineral resources sector continues to be one of Mitsui’s core business areas. Mitsui's upstream energy business aims to achieve a portfolio of high quality low cost reserves and will continue to strengthen the competitiveness of its earnings base.