Transportation and installation work is set to begin for Shell's Kaikias Waterflood project off the Louisiana coast in the United States as Subsea7 signed a contract with Shell.
Subsea7 will be structuring subsea umbilicals, riser and a rigid flowline, all running 1,650 metres deep to support the offshore development project in the Mars-Ursa Basin. This will advance sustainable production from the Kaikas project, which is being developed by the waterflood method. The field will be subjected to oil recovery two times by water injection so that displaced oil becomes apparent to the nearby wells.
Subsea7 will be running contract operations from its base in Houston, Texas, initiating project management and engineering activities. This will be followed by offshore delivery in 2027.
Craig Broussard, Senior Vice President for Subsea7 Gulf of Mexico, said, “This award strengthens our long-standing and successful collaboration with Shell. We are bringing our deepwater experience to the Kaikias development and delivering cost-effective solutions that will support safe and efficient project execution, helping Shell maximise long-term value from the field.”
Shell's investment in the Kaikias Waterflood project will generate high-margin production for the oil major.
Halliburton reported a strong close to 2025, with fourth-quarter results highlighting changing activity levels across North America, including offshore-related services in the Gulf of Mexico, alongside continued strength in international markets.
For the fourth quarter of 2025, Halliburton posted net income of US$589 million, or US$0.70 per diluted share. Adjusted net income, excluding impairments and other charges and tax adjustments, reached US$576 million, or US$0.69 per diluted share. This marked a significant improvement from the third quarter of 2025, when net income was US$18 million, or US$0.02 per diluted share, and adjusted net income stood at US$496 million, or US$0.58 per diluted share.
Total company revenue for the quarter reached US$5.7 billion, up slightly from US$5.6 billion in the previous quarter. Operating income increased to US$746 million, compared to US$356 million in the third quarter. On an adjusted basis, operating income rose to US$829 million from US$748 million.
North America revenue for the fourth quarter of 2025 was US$2.2 billion, reflecting a sequential decline of 7%. The decrease was primarily attributed to lower stimulation activity across US Land and Canada, reduced fluid services activity in the Gulf of America, and lower well intervention services in US Land. These declines were partially offset by improved cementing activity and higher completion tool sales in both US Land and the Gulf of America.
In contrast, Halliburton’s international business delivered growth, with total international revenue increasing 7% sequentially to US$3.5 billion. The company highlighted strong performance across multiple regions, including Europe, Africa and the Middle East, where well intervention services and stimulation activity increased during the quarter.
From an operating segment perspective, the Completions and Production division generated revenue of US$3.3 billion in the fourth quarter, flat sequentially.
Operating income rose by 11% to US$570 million, driven by higher year-end completion tool sales globally, improved cementing activity in the Western Hemisphere and Africa, and increased well intervention services internationally. These gains were partially offset by lower stimulation activity in the Western Hemisphere.
The Drilling and Evaluation segment also reported flat sequential revenue of US$2.4 billion. Operating income increased by 5 percent to US$367 million, supported by higher wireline activity in the Eastern Hemisphere and increased year-end software sales, offset by lower fluid services in North America.
For the full year 2025, Halliburton reported total revenue of US$22.2 billion, compared to US$22.9 billion in 2024. Operating income for the year was US$2.3 billion, while adjusted operating income reached US$3.1 billion.
Commenting on the results, Chairman, President and CEO Jeff Miller said the company outperformed expectations in the fourth quarter and highlighted the strength of Halliburton’s international business, while noting that North America is expected to respond first when macro fundamentals improve.
New legislation is on the cards which could serve to advance and streamline the USA’s Rigs to Reefs initiative.
The USA’s Subcommittee on Energy and Mineral Resources has held a legislative hearing on a bill to codify the existing Rigs to Reef initiative which allows oil and gas operators to decommission offshore energy infrastructure which has reached the end of its life, and convert it to artificial reefs.
H.R. 5745, the Marine Fisheries Habitat Protection Act, introduced by U.S. Rep. Mike Ezell (R-Mississippi), formalises and builds upon the Rigs to Reef initiative, which proponents of the bill have argued has been hampered by red tape. The bill establishes clear procedures and timelines to ensure a reliable permitting process and authorizes the Bureau of Safety and Environmental Enforcement (BSEE), in coordination with relevant state agencies, to designate Reef Planning Areas. Finally, the bill directs BSEE to provide a map of each idle structure that supports an established reef ecosystem and an annual report detailing reefing applications and outcomes to Congress, the Secretary of the Interior, and the Administrator of NOAA. BSEE Gulf of America Regional Director Bryan Domangue testified in support of the bill, saying the BSEE is keen to work with lawmakers to improve its provisions.
Subcommittee chairman Pete Stauber, R-Minnesota said, “The Rigs to Reefs program has been a great success story, thanks in no small part to partnerships between domestic energy producers and federal and state regulators and conservation agencies. I commend Representative Ezell for his leadership on the Marine Fisheries Habitat Protection Act, which will strengthen this program, benefiting marine habitat and coastal communities for years to come. I look forward to working with Representative Ezell to advance this important legislation through the Natural Resources Committee.”
However, opponents of the bill expressed the fear it could reduce government oversight, removing key environmental safeguards and allowing oil companies to more easily swerve their clean-up obligations.
The Gulf of America is one of the leading regions for Rigs to Reefs projects, with 634 platforms in the Gulf of Mexico having been transformed into reefs as of June 2023, according to a Government Accountability Office (GAO) report. Many studies have been conducted by the US Government to examine the impact the reefs have both on the structures themselves and the surrounding marine ecosystem. One benefit is that of marine restoration and biodiversity enhancement – the deployment of artificial reefs in areas that have been affected by situations such as coral bleaching and destructive fishing practices allows new habitats to house a variety of marine life and play a significant contribution to ecosystem restoration.
Other benefits can include the enhancement of fisheries around the localised area; a rise in ecotourism, in particular destination diving; added coastal protection from erosion as the rigs act as submerged breakwaters; advancement in marine research; increased maintenance of nutrient cycling and water quality; contribution to environmentally responsible practices; and coral restoration and conservation.
On the other side of the coin, however, there has been some pushback due to a number of posed risks associated with the process. Concerns include habitat displacement as some reefs can alter local marine habitats; the risk of pollution from improperly prepared materials; physical damage to the seafloor if the design or placement of the rig is not appropriate; damage to the surrounding ecosystem if the construction has not been actioned properly; the negative impacts associated with long-term maintenance of the rigs; the economic costs of reef management; and design flaws which may create conflict with local environmental conditions.
According to the United States Department of the Interior's Bureau of Safety and Environmental Enforcement, well decommissioning is a critical process for environmental protection.
After a well has been drilled and utilised for production, it must be safely plugged and sealed in the Outer Continental Shelf, with the production-supporting equipment removed for disposal. This is established right from the start when a company signs a lease for offshore exploration, Right-of-Way or Right-of-Use-and-Easement.
Decommissioning activity in a platform generally relates to two parts -- the topside that can be seen above the waterline, and the mudline substructure that remains between the surface and the seabed. The operational components that make up the topsides are removed to be taken to shore for repurposing. The substructure, on the other hand, is dismantled 15 ft below the mudline before they are transported to shore for commercial purposes or recycling/reinstallation.
In case a structure is kept as it is for conversion to an artificial reef in line with the National Oceanic and Atmospheric Administration's National Artificial Reef Plan, it requires approval from the Regional Supervisor.
A central part of BSEE's decommissioning rules is the 'Idle Iron' policy that is applicable for decommissioned and no longer 'economically viable' operations. This distinction bars inactive facilities from littering the Gulf of America by alarming operators on the urgency of dismantling and disposal responsibilities once non-productive wells have been plugged.
The Idle Iron policy helps safeguard environmental hazards that can result from unremoved topsides and the associated equipment, electronics, wiring, piping and tanks, among others. Also, severe weather conditions like hurricanes can cause idle facilities to leak, giving rise to unwanted risks.
Archer, in collaboration with SLB, has been awarded an integrated plug and abandonment (P&A) contract with Equinor for the Titan platform in the Gulf of America (GoA).
The service offerings under the contract includes project management, well engineering, provision of a compact workover rig, coiled tubing, wireline services, and a suite of downhole P&A technologies and the scope covers P&A of three wells. The award combines SLB’s established deepwater leadership in the region with Archer’s specialist expertise as a P&A service provider.
Dag Skindlo, CEO of Archer, commented, “This integrated deepwater P&A project builds on our momentum following several large P&A contract awards in the North Sea in 2025. The recent acquisitions of the US based fishing specialists WFR and Premium were key steps in our strategy to position Archer as a leading service provider in the growing deepwater P&A market in the GoA.”
The contract follows hot on the heels of the award of an integrated P&A contract with Equinor for 30 subsea wells. The fully integrated P&A programme incorporates the planning scope including project management, well and subsurface engineering (provided through the Archer Elemental joint venture) with the execution scope including wireline, fishing and remedial services, downhole mechanical isolation, P&A services, cementing, fluids, and mudlogging.
The awards further reinforce Archer’s leading position within the P&A market and reflect its ability to deliver integrated well abandonment solutions from concept selection through to the permanent abandonment of wells. The company has successfully completed hundreds of permanent P&A wells in the North Sea.
Halliburton has launched its first shankless matrix-body bit called the HyperSteer MX directional drill bit.
Improving durability and maximising directional control, the bit promises longer runs and fewer trips, resisting erosion and abrasion, and performing reliably in high-flow, abrasive environments.
"HyperSteer MX directional drill bits mark a major step forward in drilling. The technology combines the precise steerability of HyperSteer directional drill bits with a durable matrix body. It allows operators to drill longer in harsh environments and supports efforts to minimize well time and maximize directional performance for customers," said Amr Hassan, Vice President, Drill Bits and Services, Halliburton.
The tool utilises advanced matrix materials to resist erosion and abrasion, extend bit life in abrasive, high-flow environments, and improve efficiency and reliability during operations. It deliver precise steerability that boosts performance in vertical, curve, and lateral sections, and reduces well time as well as well construction costs. The bit reduces trips, lowers exposure to unplanned events, and maintains directional precision in the most abrasive environments.
HyperSteer MX directional drill bits adds to the HyperSteer portfolio, reflecting the oilfield services provider's engagement in innovative engineered solutions for asset value maximisation.
Gulfstream Services Inc. (GSI) and Oilfield Service Professionals (OSP) have announced a Global Strategic Technology Alliance in order to deliver next-gen automated cementing systems and integrated solutions for land and offshore operations across the world.
The alliance will combine OSP’s global service organisation, digital automation and field execution capabilities with GSI’s top-drive cement head systems to create a data-driven cementing platform.
The overall aim of the alliance is to advance safer, more efficient and more consistent cementing operations across the well lifecycle.
The core of the collaboration sits GSI’s RCH Top Drive Cement Head – a modular system with more than 3,500 runs worldwide, supporting casing sizes from 4-1/2” to 13-3/8” for demanding applications, both on land and offshore.
When this technology is paired with OSP’s automation and digital integration abilities, the system enables reduced red-zone exposure, improved operational consistency and enhanced execution visibility.
Jasen Gast, President and CEO of Oilfield Service Professionals, said, “This alliance represents a meaningful step forward in cementing operations. By combining our global service organisation and automation roadmap with GSI’s proven cementing systems, we are delivering a scalable, next-generation solution for operators worldwide.”
Chief Executive Officer of Gulfstream Services, Bobby Bond, commented, “By aligning Gulfstream’s field-proven cementing systems with OSP’s deployment and integration capabilities, we are expanding the reach and functionality of our technology to meet the evolving needs of global operations.”
The Atlantis Drill Center 1 expansion project turned out a big success for bp as it generated first oil, becoming the major's seventh upstream project startup of the year.
Overall, the platform is equipped to produce up to 200,000 barrels of oil per day. Designed to boost production by an additional 15,000 barrels of oil equivalent per day, the project saw the link-up of two wells to an existing drill center, a subsea hub connecting multiple wells. New wells besides, the subsea tieback also includes existing offshore production facilities through pipelines, managing to keep the 1998-discovered field operational till date, making it bp's longest-running platforms in the Gulf of America.
bp approached the mega-scale project with a sustainable approach that saw the utilisation of existing subsea inventory while drilling and completing wells more efficiently, and streamlining offshore execution planning. This allowed project delivery two months ahead of its original schedule.
"Atlantis Drill Center 1 caps off an excellent year of seven major project start-ups for bp. This project supports our plans to safely grow our upstream business, which includes increasing US production to around 1 million barrels of oil equivalent per day by 2030.
“This latest success demonstrates the dedication of our US project team and our teams around the world, who are delivering new barrels at pace and with lower production costs, in service of growing long-term value for shareholders," said Gordon Birrell, bp’s Executive Vice President of production and operations.
Andy Krieger, bp’s Senior Vice President for the Gulf of America and Canada, said, “This expansion at Atlantis is further testament to the benefits of maximising production from our existing platforms in the Gulf of America, growing bp’s US offshore energy production safely and efficiently.
"We are committed to investing in America as we firmly believe this region will continue to play a critical role in delivering secure and reliable energy to the world today and tomorrow.”
While bp is Atlantis’ operator with 56% working interest, Woodside Energy remains co-owner with 44% working interest.
Buccaneer Energy will be advancing the next phase of development in the Fouke area of the Pine Mills field.
Leveraging the terms of its new offset lease, the company is preparing to implement a secondary recovery (waterflood) based on dedicated injection wells, Turner #1 and Daniel #1. This decision is the result of a technical evaluation of the recently drilled Allar #1 well.
The company is considering the waterflooding approach, as it is known to work especially in the Pine Mills field and surrounding areas. Primary recovery typically ranges between 5% and 20%, of the original oil in place, averaging around 15% in the region. Waterflood promises recovery chances of as much as 30% and 50% of the OOIP. This gives reason to anticipate that recoverable volumes in the Fouke area can go up by two to three times, with current estimates indicating 667,000 to 1,002,000 bbls could ultimately be recovered.
To commence waterflood activities, however, it is necessary to produce before the Texas Railroad Commission the formation of a "waterflood unit" comprising all leaseholders and royalty owners within the proposed area. Potentially, a six-month activity, this will allow to reinstate production from Turner #1, which is expected to deliver a modest contribution to current field output while preparatory engineering and regulatory work progresses.
Paul Welch, Buccaneer Energy's Chief Executive Officer, said, "The decision to initiate a waterflood in the Fouke area marks a key step forward in maximising long-term value from our Pine Mills assets. Waterflooding has a proven track record in these reservoirs, and we believe the Turner #1 and Daniel #1 wells provide ideal injection points to support a highly effective recovery scheme.
We are confident that this programme will materially increase recoverable reserves and enhance the field's production profile. We look forward to updating investors as we progress the regulatory and technical workstreams required for implementation."
An international oil & gas exploration and production company with development and production assets in Texas, Buccaneer owns a 32.5% Working Interest in the Fouke area of the Pine Mills field.
INEOS Energy has reported a new oil discovery in the Norphlet formation in the Gulf of America, where the company holds a 21% working interest
The Nashville exploration well, operated by Shell with a 79% interest, represents INEOS Energy’s first successful exploration outcome in the region.
Drilled to a depth of more than five miles below the seabed, the Nashville well encountered high-quality oil within one of the Gulf’s most prospective deepwater reservoirs. The discovery is located close to Shell’s Appomattox production platform, opening up the possibility of a tie-back development to existing infrastructure jointly owned by Shell and INEOS.
David Bucknall, CEO of INEOS Energy, commented, "This is a good result for INEOS Energy and an important step in building our presence in the US Gulf where world-class resources are to be found and developed responsibly. We believe Nashville will help strengthen energy security and provide reliable supplies for many years to come."
According to the company, the well was drilled using the Deepwater Proteus, regarded as one of the most advanced offshore drilling rigs currently in operation. INEOS added that further technical evaluation is under way to assess the full scale and commercial potential of the discovery.
Heather Osecki, CEO of INEOS Energy’s US Gulf business, said, "The drilling results at Nashville are very encouraging and fully in line with what we hoped to find. This discovery is an important first step in our plans to grow our existing assets while we look to further strengthen our position in the Gulf. We look forward to continuing our work to bring further value to the Appomattox host platform."
As NuGulf is looking towards major decommissioning operations, a Bureau of Safety and Environmental Enforcement-aligned Cased Hole Well Control Manual for Decommissioning Activity that is dedicated to the nearshore Gulf of America has been released.
The document focuses on decommissioning where the well is made safer, especially during the operation. The initial process involves establishing plug and cement barriers to isolate all hydrocarbon hazards. Once this step is achieved, well changes are determined by 'class' from pressure for flow potential to no pressure and no potential to flow. Equipment rig up can change from pressure tested PCE to 'open hole' operations to cut and pull tubing and casing.
This document comes after a tried and tested onshore Cased Hole Well Control Manual that ensured consistency in operations and both well site supervisors and contractors understand what is required for any cased hole operation.
A United States-based operator, NuGulf works to eliminate the global Asset Retirement Obligation (ARO) through the careful decommissioning, plugging and abandoning, and environmental cleanup of wells and field infrastructure. Their approach involves innovative solutions to efficiently deliver some of the most challenging decommissioning, well intervention and hurricane recovery projects.
Shell Offshore has taken a final investment decision on a waterflood project at the Kaikias field in the Gulf of America to aid in boosting production.
Water will be injected to displace additional oil in the reservoir formation which supplies production to Shell’s Ursa platform in the Mars Corridor.
The method acts as a secondary recovery where the injected water physically sweeps the displaced oil into adjacent production wells, while re-pressurising the reservoir. First injection is penned for 2028 and is anticipated to extend the production lifecycle of Ursa by several years.
Peter Costella, Shell’s Upstream President, said, “Following our decision to increase our stake in Ursa earlier this year, this additional investment continues to maximise the value of the asset. It also contributes to our aim of maximising high-margin production and longevity in a core basin to maintain liquids production.”
Page 1 of 24
Copyright © 2026 Offshore Network
