Shell Offshore Inc. (Shell) has successfully completed the sale of its assets in the Na Kika and Columbia fields in the Gulf of Mexico, United States, to Talos Energy and a subsidiary of Ridgewood Energy for approximately $840 million. In this transaction, Shell has divested its 50% non-operating interest in the Na Kika platform, which is managed by bp, as well as its 100% interest in the Columbia tieback.
Transaction Details and Interests
In this deal, Talos Energy acquired a 25% working interest in the Na Kika field and a 50% working interest and operatorship in Columbia. Ridgewood also purchased the remaining interests sold by Shell. Talos has paid a final cash purchase amount of $420 million for its share of the assets, which includes a $42.5 million deposit that was previously held in escrow and is subject to customary post-closing adjustments.
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Paul Goodfellow, President and CEO of Talos, stated that the closing of this transaction is an important step in executing our strategy to build a scalable and sustainable portfolio and to become a leader in offshore oil and gas exploration and production. He added that these oil assets will contribute to generating additional cash flow and growth opportunities based on infrastructure in the Gulf.
Shell's Production and Reserves in the Na Kika and Columbia Fields
Shell's average production from the Na Kika and Columbia fields is expected to reach approximately 37,000 barrels of oil equivalent per day (boed) by 2025. By the end of 2025, Shell reported proven reserves of 4.3 million barrels of oil equivalent (MMboe) in the Na Kika field and 7.2 million barrels of oil equivalent in the Columbia field.
The semi-submersible Na Kika platform has been producing since 2003, and production from the Columbia tieback began in 2005. bp continues to operate the Na Kika field and retains its 50% interest.
Shell will also benefit from uncapped contingent payments through 2027 and additional royalties on production from new Na Kika tiebacks, subject to certain conditions. The buyers have assumed the related abandonment liabilities, while Shell Trading US will retain the rights to production from Na Kika and Columbia under agreements with the buyers.
Talos has stated that the acquired assets will be attributed to its third-quarter financial results for 2026 from September 22 and will be fully integrated from the fourth quarter onward.
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