Shell has finalized its deal to sell its 50% nonoperated working interest in the Na Kika platform and associated fields in the Gulf of Mexico, as well as its 100% owned Coulomb tieback.
Shell received approximately $840 million in cash proceeds. The assets were acquired by Talos Energy and Ridgewood Energy.
Talos picked up a 50% working interest and operatorship in the Coulomb field and a 25% nonoperated working interest in the BP-operated Na Kika platform and four associated fields. The final net cash purchase price at closing was $420 million, which includes the previously escrowed $42.5 million deposit, and is subject to customary post-closing adjustments.
“The closing of this transaction marks another important step in executing our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P,” said Paul Goodfellow, Talos president and CEO. “These high-quality, oil-weighted assets immediately enhance our scale, increase free cash flow generation, improve our margins, and provide infrastructure-led growth opportunities.”
Shell said the sale supports its efforts to reshape its portfolio.
“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,” Peter Costello, the upstream president for Shell, said when the sale was announced.
The total consideration announced at signing was $1.7 billion, before customary adjustments and certain contingent payments.
Included in the deal, Shell will receive uncapped upside-linked payments through 2027 and overriding royalty interests on production from new Na Kika tiebacks, subject to conditions.
For 2025, Shell’s entitlement share of production from these assets was 37,000 BOE/D. The company said its modeling showed that Na Kika and Coulomb would not be meaningful contributors to production by 2030. Shell said its proved reserves were 4.3 million BOE at the end of 2025 for Na Kika and 7.2 million BOE at the end of 2025 for Coulomb.
The Na Kika semisubmersible platform began producing in 2003. Production from the Coulomb tieback began in 2005. BP is operator of Na Kika and holds the remaining 50% working interest.
The deal includes the buyers assuming certain decommissioning obligations and providing security with respect to such obligations.