Shell Awards Contract for New Gulf of Mexico Platform to Seatrium

Oil major Shell is wasting no time in advancing the development of the Sparta deepwater project in the U.S. Gulf of Mexico. Just days after making the final investment decision (FID) on the project, the company has awarded the contract for the construction of a semi-submersible floating production unit (FPU) as part of plans to ensure production commences in 2028.

Shell awarded the contract to Seatrium, which will build the hull, topsides and living quarters of the FPU. It follows a letter of intent sealed by both parties in August last year.

The Sparta FPU will be situated in the Garden Banks area, about 150 nautical miles off the coast of Louisiana. It will have a single topside bolstered by a four-column, semi-submersible floating hull. It is designed to produce 90,000 barrels of oil equivalent per day (boe/d). The FPU will be deployed in a depth of more than 1,400 meters of water to support eight initial wells.

Shell, which owns a 51 percent operator stake in Sparta, reached a final investment decision for the project on December 19.

Sparta currently has an estimated, discovered recoverable resource volume of 244 million boe. It marks Shell’s first development in the Gulf of Mexico to produce from reservoirs with extreme pressures up to 20,000 pounds per square inch. It is scheduled to begin production in 2028.

The Sparta FPU cements the relationship between Shell and Seatrium, which also constructed the Vito and Whale newbuild facilities. The FPU is a near-sister of Vito and Whale in that it replicates about 95 percent of Whale’s hull and 85 percent of Whale’s topsides. The two-level topside for Sparta will be integrated and lifted to the hull using Seatrium’s Goliath twin cranes, which are capable of lifting up to 30,000 tonnes.

“We are deeply honored that Shell has awarded Sparta, the third FPU newbuild, to Seatrium, following the successful deliveries of the Vito and Whale FPUs. It is a strong affirmation of our team’s capabilities and the long-standing partnership between both parties,” said William Gu, Seatrium Executive Vice President and Head of Oil & Gas International.

Though the two companies did not disclose the cost of the FPU, market intelligence firm DBS Group Research estimated it could be worth $300-400 million. “This marks a good start to the year and also a strong affirmation of Seatrium’s capabilities and the long-standing partnership with Shell,” said DBS in a research note.

The Sparta development will be the first of Shell’s "replicable" projects with all-electric topside compression equipment, reducing greenhouse gas intensity and emissions from its in-house operations.