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Equinor and Shell Finalize Sparta Deepwater Development in Gulf of Mexico

Shell's Mars platform in the U.S. Gulf of Mexico. Photo credit: Royal Dutch Shell

Equinor and Shell Finalize Sparta Deepwater Development in Gulf of Mexico

Mike Schuler
Total Views: 2707
December 27, 2023

Norwegian energy company Equinor and Shell Offshore Inc., a subsidiary of Shell, have announced the final investment decision for the Sparta deepwater development in the U.S. Gulf of Mexico (GOM).

The project is set to begin production in 2028 and is expected to have a peak capacity of 100,000 barrels of oil equivalent per day (boe/d).

Sparta was originally discovered in 2012 and is located approximately 171 miles off the coast of Louisiana. Equinor holds a 49 percent interest in the field, while Shell Offshore Inc. holds the remaining 51 percent interest and serves as the operator. The field spans four situated in the Garden Banks area of the US Gulf of Mexico, with a water depth of around 4,300 feet.

The development plan for Sparta includes the installation of eight production wells, which will be connected to a semi-submersible floating production unit. The design approach for the Sparta platform is based on the successful Shell-operated Vito and Whale projects, ensuring a standardized and cost-efficient development process.

“We are pleased to reach this important milestone and advance the Sparta development together with Shell,” says Philippe Mathieu, Equinor’s executive vice president for Exploration and Production International. “Sparta marks the third final investment decision in our international upstream business this year, underlining our commitment to invest in long-term reliable energy supply. The US is a core area for our international business, where we continue to create significant value with good carbon efficiency.”

The Sparta development represents a significant addition to Equinor’s international business, with the U.S. being a core area for the company. Equinor’s production assets in the US Gulf of Mexico delivered 149,000 barrels of oil equivalent per day in Q3 2023. The company aims to further expand its US portfolio, which includes offshore wind and low carbon solutions projects.

Sparta will be Shell’s 15th deep-water host in the Gulf of Mexico.

“Shell’s latest deep-water development demonstrates the power of replication, driving greater value from our advantaged positions,” said Zoë Yujnovich, Shell’s Integrated Gas & Upstream Director. “This investment decision is aligned with our commitment to pursue the most energy-efficient and competitive projects while supplying safe, secure energy supplies today and for decades to come.”   

Sparta will serve as a new hub in a key producing region, contributing valuable barrels with relatively low average carbon emissions intensity. The platform will feature all-electric compression equipment, enabling significantly reduced emissions intensity during production.

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