Subsea7 Secures New Assignment with Shell Offshore for Sparta Deepwater Development in Gulf of America

Luxembourg-domiciled Subsea7 has recently added another feather to its cap by securing a new assignment with Shell Offshore for a floating production system (FPS) set to be deployed in the Gulf of America, previously known as the U.S. Gulf of Mexico.

The contract, valued between $50 million and $150 million, will see Subsea7 undertake the transportation and installation of the FPS at the Sparta deepwater development, formerly referred to as North Platte, spanning an area of 4,300 square feet (1,310 meters).

Located at Garden Banks block 959 off the coast of Louisiana, the project involves operations at water depths of up to 1,635 meters. Project management and engineering activities are set to commence immediately at Subsea7’s Houston office, with offshore operations slated to kick off in 2027.

The Sparta field, discovered in 2012 by Cobalt International Energy, is operated by Shell Offshore (51%) in collaboration with Equinor (49%). The development plan includes the tying back of eight production wells to a semi-submersible floating production unit (FPU), with an estimated recoverable resource volume of 244 million barrels of oil equivalent per day (boe/d).

Craig Broussard, Senior Vice President for Subsea7 Gulf of Mexico, expressed pride in the continued collaboration with Shell, citing past successful projects like the Vito development. Broussard looks forward to playing a significant role in the Sparta project’s successful delivery.

The Sparta project’s final investment decision was made in December 2023, with Seatrium securing a contract for the construction and integration of the Sparta FPU’s hull, topsides, and living quarters. The FPU, designed to produce 90,000 boe/d, features all-electric topside compression equipment aimed at reducing carbon emissions from operations.

Shell has engaged TechnipFMC for an integrated engineering, procurement, construction, and installation (iEPCI) project utilizing high-pressure subsea production systems rated up to 20,000 psi (20K). Additionally, Gate Energy has been selected for commissioning management and execution work on the Sparta semi-submersible, scheduled to come online in 2028.

Subsea7, currently exploring a potential merger with Saipem, continues to secure new assignments, with recent developments including the second phase of the Northern Lights CO2 transport and storage development in Norway.