ConocoPhillips, Houston, announced plans to sell its interests in two Gulf of Mexico offshore oilfields to Shell, London.
ConocoPhillips said on Friday it would sell its 15.96% stake in the Ursa field and 1% stake in the Europa field to Shell for $735 million, as part of a wider plan to streamline its portfolio.
“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, ConocoPhillips senior vice president, strategy, commercial, sustainability, and technology.
The company has said it is seeking to divest non-core assets to reduce debt after its $22.5 billion, Nov. 2024 takeover of rival Marathon Oil. Earlier this month, ConocoPhillips said it was offloading its non-core Lower 48 assets for $600 million.
For Shell, the Ursa and Europa deal advances its position as the largest deepwater operator and one of the largest leaseholders in the Gulf of Mexico, recently renamed by President Trump as the Gulf of America.
The transaction, which is expected to close by the end of the second quarter of 2025 subject to customary closing conditions, increases Shell’s working interest in Ursa from 45.4% to 61.35%.
The Ursa tension-leg platform, which began production in 1999, is located approximately 130 miles southeast of New Orleans within the Mars basin.
“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 and 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.”
