Shell Offshore, a subsidiary of Shell, and its partner Equinor have made the final investment decision for the Sparta deep-water development in the US Gulf of Mexico.

The project is expected to reach peak production of approximately 90,000boe/d. The development currently hosts estimated recoverable resources of 244 million barrels of oil equivalent (mboe).

Shell Offshore owns a 51% operator stake in the Sparta project while Equinor Gulf of Mexico owns the remaining 49% interest.

Shell integrated gas & upstream director Zoë Yujnovich said: “Shell’s latest deep-water development demonstrates the power of replication, driving greater value from our advantaged positions.

“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.”

Due to commence production in 2028, the Sparta development will mark Shell’s 15th deep-water host in the Gulf of Mexico.

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By GlobalData

The Sparta project will also be the first of Shell’s replicable projects to feature all-electric topside compression equipment. This innovation will significantly reduce greenhouse gas intensity and emissions from Shell’s operations.

Spanning four Outer Continental Shelf (OCS) blocks in the Garden Banks area of the US Gulf of Mexico, the Sparta project will feature a semi-submersible production host in a depth of more than 1,400m (4,700ft) of water. Initially, the development will have eight oil and gas producing wells.

The Sparta project’s design closely mirrors the 100,000bpd Vito and Whale designs, both of which are four-column semi-submersible host facilities.

The current estimated recoverable resource volumes of the primary Sparta development are 244mboe.

These estimates are currently classified as 2P under the Society of Petroleum Engineers’ Resource Classification System.