Shell to sell Na Kika 50% stake and Coulomb tieback to Talos and Ridgewood for $1.7bn

Deal overview

Shell agreed to sell its 50% non‑operated working interest in the Na Kika platform and associated fields in the Gulf of America, plus its 100% owned Coulomb tieback, to subsidiaries of Talos Energy and Ridgewood Energy for total consideration of $1.7 billion, subject to customary adjustments and certain contingent payments.

Timeline and approvals

The transaction has an effective date of July 1, 2025, and is expected to close by the end of 2026, subject to regulatory approvals. Closing of any divestment of Shell’s interest in the Na Kika host and associated fields to the buyers is subject to BP’s preferential right to purchase within 30 days from notification for the price allocated under the purchase and sale agreement.

Production and reserves

For 2025, Shell’s entitlement share of production from these assets was 37,000 barrels of oil equivalent per day. Shell reported proved reserves of 4.3 million boe at end‑2025 for Na Kika and 7.2 million boe for Coulomb, and its modelling indicates Na Kika and Coulomb will not be meaningful contributors to production by 2030. The Na Kika semi‑submersible began producing in 2003 and Coulomb production began in 2005; BP is the operator and holds the other 50% working interest in Na Kika.

Commercial terms and obligations

Under the agreement, Shell will receive uncapped upside‑linked payments through 2027 and overriding royalty interests on production from new Na Kika tiebacks, subject to conditions. The buyers will assume certain decommissioning obligations and provide security with respect to those obligations. Shell Trading US Company will retain rights to offtake from Na Kika and Coulomb through negotiated agreements with the buyers.