Shell and Equinor to go ahead with Sparta deepwater development
Written by Nick Blenkey
The Sparta platform is a replication of the Shell-operated Vito projectThe Sparta platform is a replication of the Shell-operated Vito project (Photo: Shell, all rights reserved)
In yet another demonstration of the continuing importance of the U.S. Gulf of Mexico as a source of low carbon intensive production of oil, Shell Offshore Inc., a subsidiary of Shell plc,(51% operator) and Equinor Gulf of Mexico LLC (49%) have reached the final investment decision to go ahead with the Sparta deepwater development.
Originally discovered in 2012, the project is located 171 miles (275 kilometers) offshore Louisiana, straddling four blocks of the Garden Banks area. With a designed capacity of 100,000 barrels of oil equivalent per day (boe/d) at peak, Sparta is expected to begin production in 2028. Expected ultimate recoverable resources are currently estimated at above 250 million barrels.
The development plan includes eight production wells tied back to a semi-submersible floating production unit. The Sparta platform is a replication of the Shell-operated Vito project (Equinor 36.89% partner) and Whale project, enabling a standardized and cost-efficient design approach.
“Shell’s latest deep-water development demonstrates the power of replication, driving greater value from our advantaged positions,” said Zoë Yujnovich, Shell’s integrated gas & upstream director. “This investment decision is aligned with our commitment to pursue the most energy-efficient and competitive projects while supplying safe, secure energy supplies today and for decades to come.”
Building on more than 40 years of deep-water expertise, Sparta also marks Shell’s first development in the Gulf of Mexico to produce from reservoirs with pressures up to 20,000 pounds per square inch.
The Sparta development will be the first of Shell’s replicable projects to feature all-electric topside compression equipment, significantly reducing greenhouse gas intensity and emissions from Shell’s own operations.
“We are pleased to reach this important milestone and advance the Sparta development together with Shell,” said Philippe Mathieu, executive vice president for exploration and production international at Equinor. “Sparta marks the third final investment decision in our international upstream business this year, underlining our commitment to invest in long-term reliable energy supply. The U.S. is a core area for our international business, where we continue to create significant value with good carbon efficiency.”
