Shell Starts New Deepwater GoM Field One Year Ahead Of Plan

Royal Dutch Shell Plc (NYSE: RDS.A) on May 31 announced the start of production at the Kaikias Field in the U.S. Gulf of Mexico (GoM), around one year ahead of schedule.

Production from the subsea deepwater development, which will reach 40,000 barrels of oil equivalent per day, comes after Shell reduced its costs by around 30% to allow it to generate profit at less than $30 a barrel, the company said.

“We believe Kaikias is the most competitive subsea development in the Gulf of Mexico and a prime example of the deepwater opportunities we’re able to advance with our technical expertise and capital discipline,” said Andy Brown, Shell’s upstream director.