& Production announced today an agreement for a like kind exchange with Total E&P USA. Under this agreement, Shell will exchange its 17 percent non-operated interest in the deepwater Gulf of Mexico Tahiti field
for Total's interests in natural gas assets in South Texas
The Tahiti field is operated by Chevron and located in Green Canyon blocks 596, 597, 640 and 641 in 4,100 feet of water, approximately 190 miles southwest of New Orleans.
In exchange for its interest in Tahiti, Shell will acquire Total's operated interests in three natural gas fields and additional interests in a fourth field, now operated by Shell. With current net production of 107 million cubic feet equivalent per day, these fields are a significant addition to the portfolio bringing the net South Texas gas production to 300 million cubic feet equivalent per day.
"Bringing these fields into our US gas portfolio provides us an immediate growth opportunity building on our demonstrated competitive cost structure and drilling and development expertise," said Marvin E. Odum, Executive Vice President - EP Americas, Shell Exploration & Production. "A key element of Shell's strategy is to add more integrated gas, and these assets are an excellent fit with other onshore properties in Texas and the Rockies."
The transaction is expected to close in January of 2006 and is subject to, among other things, customary regulatory requirements and consents.