Shell Offloads Stake in US Gulf Production Hub
Shell PLC is selling its 50 percent ownership in its only non-operated platform in the Gulf of America, including associated fields, and 100 percent in the Coulomb tieback to Ridgewood Energy Corp and Talos Energy Inc for $1.7 billion.
"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," Shell upstream president Peter Costello said in an online statement. "We remain focused on sustaining our material liquids production into the next decade".
The Na Kika semisubmersible platform, operated by BP PLC with a 50 percent interest, contributed 37,000 barrels of oil equivalent (boe) a day to Shell's production in 2025, Shell said. Na Kika began production 2003. Coulomb, tied back to the platform, went onstream 2005.
Na Kika accounted for 4.3 million boe of Shell's proven reserves at the end of 2025, while Coulomb accounted for 7.2 million boe, Shell noted.
"According to Shell's modeling, Na Kika and Coulomb will not be meaningful contributors to production by 2030", the British energy giant said.
Montvale, New Jersey-based Ridgewood and Houston, Texas-based Talos agreed to pay Shell "uncapped upside-linked payments through 2027 and overriding royalty interests on production from new Na Kika tiebacks, subject to conditions", Shell said. The prospective new owners also agreed to assume decommissioning obligations.
"Shell Trading US Company will retain rights to offtake from Na Kika and Coulomb through negotiated agreements with the buyers", Shell added.
Talos president and chief executive Paul Goodfellow said separately, "The bolt-on is highly accretive, materially enhances free cash flow, and includes Infrastructure-Led Exploration opportunities where our field life extension track record can unlock value beyond current reserves. We also see a clear pathway for operated development activity to compete for capital beginning in 2027, further supporting long-term value creation as we continue to advance our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P".
The transactions involving Na Kika and the 4 associated fields - Ariel, Fourier, Herschel and Kepler - are subject to BP waiving its right to purchase the stake it does not already own, according to Shell.
Sale of Lubes Business
In another United States divestment Shell said Wednesday it had completed the transfer of Jiffy Lube International to Monomoy Capital Partners for $1.3 billion.
"The sale includes the Jiffy Lube brand and a network of franchised stores which are owned and operated by independent franchisees, in addition to franchised stores that are owned and operated by PVA [Jiffy Lube subsidiary Premium Velocity Auto LLC]", Shell said.
Jiffy Lube, part of Shell for over 20 years as a provider of lubrication, oil change and light repairs for cars and light trucks, comprised about 6.5 percent of Shell's lubes footprint in the U.S. and Canada, Shell noted.
"Shell has retained its Pennzoil Quaker State, Rotella and other Shell Lubricants brands, along with marketing, manufacturing and distribution of lubricants in the U.S. and Canada that serve consumer, commercial and industrial sectors", it said.
"As part of the transaction, Pennzoil Quaker State Company retains a long-term lubricants supply agreement with Monomoy.
"The divestment supports ongoing portfolio high-grading by monetizing a non-core Lubricants asset".
Last year Shell launched a $5-7 billion structural cost reduction target by 2028 relative to 2022. Shell said in the plan announced on investor day on March 25, 2025 that it would "pursue focused growth in our high-return mobility and lubricants businesses".
Commitment to U.S.
Despite the divestments, Shell said the U.S., where it counts more than 11,000 employees, remains "a leading destination" for the company's investment.
"Shell is the leading deep-water operator and largest producer of oil and gas in the U.S. Gulf of America and the largest buyer of U.S. LNG", Shell said.
"Shell operates the largest branded fuel network in the United States, with about 12,000 Shell-branded gas stations serving more than 7 million customers daily", the company added.
To contact the author, email jov.onsat@rigzone.com
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