Shell gives Subsea7 work on its Gulf of America deepwater project

Luxembourg-domiciled Subsea7 has tucked a new assignment under its belt with Shell Offshore, a subsidiary of the UK-headquartered energy giant Shell, for a floating production system (FPS) destined for a deepwater development in the Gulf of America, formerly known as the U.S. Gulf of Mexico.

While disclosing a sizeable contract between $50 million and $150 million, Subsea7 explains that the new job with Shell is for the Sparta deepwater development, previously known as North Platte, in the Gulf of America, measuring 4,300 square feet (1,310 meters).

The Luxembourg-domiciled player’s scope of work 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 meters.

According to the company, the project management and engineering activities will begin immediately at its office in Houston, Texas, with offshore operations expected to start in 2027. Discovered in 2012 by Cobalt International Energy, the Sparta field is operated by Shell Offshore (51%) with Equinor (49%) as the oil major’s partner.

Craig Broussard, Senior Vice President for Subsea7 Gulf of Mexico, commented: “We are proud to continue our collaboration with Shell in the US, building on past projects, including the recent Vito development. We look forward to playing a key role in the successful delivery of the Sparta project.”

The development plan for the project entails eight production wells tied back to a semi-submersible floating production unit (FPU), with an estimated discovered recoverable resource volume of 244 million barrels of oil equivalent per day (boe/d).

Following a final investment decision for the Sparta project in December 2023, Seatrium got a contract for the construction and integration of the hull, topsides, and living quarters of the Sparta FPU, featuring a single topside module supported by a four-column semi-submersible floating hull.

This FPU, which will replicate about 95% of the Whale FPU’s hull and 85% of its topsides, is designed to produce 90,000 boe/d. Sparta is perceived to be the first of Shell’s replicable projects to feature all-electric topside compression equipment that is expected to curb carbon emissions from operations.

Shell picked TechnipFMC to take care of the part of the work described as the first integrated engineering, procurement, construction, and installation (iEPCI) project to use high-pressure subsea production systems rated up to 20,000 psi (20K).

The company followed this up by selecting Gate Energy for the commissioning management and execution work concerning the Sparta semi-submersible. This deepwater project is scheduled to come online in 2028.

Subsea7, which is in the process of pursuing a potential merger with Saipem, has secured multiple new assignments, including the deal for the second phase of the Northern Lights CO2 transport and storage development in Norway.