Subsea 7 wins work on Shell’s Sparta project

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

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

Project management and engineering activities will begin immediately at Subsea 7’s office in Houston, Texas, with offshore operations expected to start in 2027. No financial details were revealed. However, the company stated that the contract was sizeable, putting it in the $50m to $150m range.

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

Shell made a final investment decision for the Sparta project in December 2023. Shell operates the project with a 51% stake, while its partner Equinor holds 49%.

At peak production, the project will produce approximately 90,000 barrels of oil equivalent per day. It holds an estimated discovered recoverable resource volume of 244 million boe.

The project will be Shell’s 15th deepwater host in the Gulf of Mexico and is currently scheduled to begin production in 2028. Sparta will use previously used designs and replicate about 95% of Whale FPU’s hull and 85% of its topsides.