Subsea 7 Wins Contract for Shell’s Sparta Deepwater Development

Offshore engineering and services player Subsea 7 has secured a contract for work on Shell’s Sparta deepwater development in the US Gulf of Mexico.

The project entails the transportation and installation of a floating production system at Garden Banks block 959, located off the southeastern coast of Louisiana at water depths of up to 1,635 meters.

Project management and engineering activities will commence immediately at Subsea 7’s office in Houston, Texas, with offshore operations set to begin in 2027. While specific financial details were not disclosed, the company described the contract as sizeable, falling within the $50 million to $150 million range.

“We are thrilled to continue our collaboration with Shell in the US, building on past projects like the recent Vito development,” stated Craig Broussard, SVP for Subsea 7 Gulf of Mexico.

Shell made a final investment decision for the Sparta project in December 2023. The project is operated by Shell with a 51% stake, while Equinor holds the remaining 49%.

Once at peak production, the Sparta project is projected to produce around 90,000 barrels of oil equivalent per day. It boasts an estimated discovered recoverable resource volume of 244 million boe.

This will mark Shell’s 15th deepwater host in the Gulf of Mexico and is currently slated to commence production in 2028. The Sparta project will leverage previously used designs, replicating approximately 95% of Whale FPU’s hull and 85% of its topsides.