Shell Offshore Inc., a subsidiary of Shell plc, has awarded a key offshore installation contract to Subsea 7 for its deepwater Sparta development in the Gulf of Mexico.
The project is located in Garden Banks block 959, off the coast of southeastern Louisiana, where water depths reach approximately 1,635 meters.
The contract, classified as “sizeable” by Subsea 7, is valued between $50 million and $150 million. It includes the transportation and installation of a floating production system (FPS). Subsea 7’s Houston office will lead the engineering and project management work, with offshore operations expected to begin in 2027.
Strategic Deepwater Expansion for Shell and Equinor
Sparta is Shell’s 15th deepwater production facility in the Gulf of Mexico, following major developments like Vito and Whale. Shell made the final investment decision (FID) for the Sparta project in December 2023, and production is targeted to begin by 2028.
Shell holds a 51% stake in the project and serves as the operator, while Equinor ASA, through its Gulf of Mexico unit, owns the remaining 49%. At peak, Sparta is expected to produce up to 90,000 barrels of oil equivalent per day, with estimated recoverable resources of 244 million barrels of oil equivalent.
Leveraging Replication for Efficiency
Shell is taking a replication-based approach to streamline development and cut costs. The company plans to reuse roughly 95% of the hull and 85% of the topsides from the Whale Floating Production Unit (FPU)—an approach that significantly reduces both construction time and capital expenditure.
In addition, an integrated engineering, procurement, construction, and installation (EPCI) contract was awarded to TechnipFMC, which will deploy high-pressure subsea production systems for the site.
Strengthening Ties with Subsea 7
This award further strengthens the long-standing collaboration between Shell and Subsea 7, following successful past projects such as the Vito development. It also underscores Subsea 7’s growing footprint in deepwater infrastructure, particularly across the Gulf of Mexico.
With Sparta, Shell and Equinor are continuing to expand their deepwater portfolio, tapping into high-potential reserves and reinforcing the Gulf’s role as a key player in global offshore energy production.