ConocoPhillips has entered into an agreement to sell its minority interests in the Ursa and Europa fields and Ursa Oil Pipeline Company LLC to Shell for $735 million. The transaction also includes an overriding royalty interest in the Ursa field. The deal will increase Shell’s working interest in its operated Ursa platform, pipeline, and associated fields from 45.3884% to a maximum of 61.35%, following the agreement, subject to preferential rights election by other working interest partners. ConocoPhillips said proceeds from the transaction will be used for general corporate purposes.
“Combined with previously announced dispositions, 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, senior vice president, strategy, commercial, sustainability, and technology at ConocoPhillips.
The transaction also includes ConocoPhillips’ 15.96% membership interest in the Shell-operated Ursa Oil Pipeline Company LLC, which will be held by Shell Pipeline Company, ConocoPhillips’ 1% stake in the Europa prospect—also operated by Shell, and ConocoPhillips’ 3.5% overriding royalty interest in Ursa. This royalty interest was acquired by ConocoPhillips through its merger with Marathon Oil completed in November 2024.
Full-year 2024 production associated with ConocoPhillips’ 15.96% interest in the Ursa field and 1% stake in the Europa field was approximately 8,000 BOE/D.
The transaction is subject to customary closing conditions and is expected to be completed by the end of the second quarter of 2025. The effective date of the transaction was 1 January 2025.
Shell is the operator of the Ursa tension leg platform (TLP) and currently holds a 45.3884% working interest in the asset with BP Exploration & Production Inc. (22.6916%), ECP GOM III LLC (15.96%), and ConocoPhillips Company (15.96%).
“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.”
The Ursa TLP, which began production in 1999, is located approximately 130 miles southeast of New Orleans within the Mars Basin. The Ursa/Princess field has produced more than 800 million BOE total gross over roughly 25 years.
