Mitsui & Co., Ltd. ("Mitsui") is pleased to announce that first oil production has been successfully achieved ahead of schedule from the Kaikias deep-water project in the U.S. Gulf of Mexico, which is owned by Shell Offshore Inc., (80%, operator, "Shell"), a subsidiary of Royal Dutch Shell plc, and MOEX North America LLC (20%, "MOEX NA"), a wholly owned subsidiary of Mitsui Oil Exploration Co., Ltd. (a subsidiary of Mitsui in which Mitsui has 74.27% equity interest). The Kaikias project is expected to produce up to 40,000 barrels of oil equivalent per day when fully ramped up.
Shell, in collaboration with MOEX NA, achieved cost reductions and increased development pace by competitively designing the new wells, efficiently managing drilling and completion activities and using existing subsea and processing equipment at the nearby Shell operated Ursa oil and gas production hub. Shell and its contractors completed all necessary topside modifications and project commissioning activity without interrupting production operations at Ursa.
Additional oil resources at Kaikias were discovered by drilling a pilot-hole well, which increased the field's total recoverable resource base. Together with Shell, Mitsui will continue to work through MOEX NA to further expand the project, whilst ensuring safe and reliable operations.
The energy and mineral resources sector continues to be one of Mitsui's core areas. Mitsui's upstream energy business aims to achieve a portfolio of high quality low cost reserves, and we will continue to strengthen the competitiveness of its earnings base.