Shell Invests in the Sparta Development in the Gulf of Mexico

December 19, 2023 adhigo

HOUSTON, Dec. 19, 2023 /PRNewswire/ — Shell Offshore Inc., a subsidiary of Shell plc, today announced the Final Investment Decision (FID) for Sparta, a deep-water development in the U.S. Gulf of Mexico that represents our competitive approach to simplifying and replicating projects.

Shell Whale asset leaving Singapore. Photo credit: Shell.

Owned by Shell Offshore Inc. (51% operator) and Equinor Gulf of Mexico LLC (49%), Sparta is expected to reach a peak production of approximately 90,000 barrels of oil equivalent per day (boe/d) and currently has an estimated, discovered recoverable resource volume of 244 million boe. Sparta will be Shell’s 15th deep-water host in the Gulf of Mexico and is currently scheduled to begin production in 2028.

Sparta showcases Shell’s cost-efficient development approach through standardized, simplified host designs, first utilized at the Vito development and later replicated at the Whale development. An enhanced replication of Vito and Whale, Sparta replicates about 95% of Whale’s hull and 85% of Whale’s topsides.

“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.”

Building on more than 40 years of deep-water expertise, Sparta also marks Shell’s first development in the Gulf of Mexico to produce from reservoirs with pressures up to 20,000 pounds per square inch.

The Sparta development will be the first of Shell’s replicable projects to feature all-electric topside compression equipment, significantly reducing greenhouse gas intensity and emissions from our own operations.

Notes to editors

The Sparta development spans four Outer Continental Shelf (OCS) blocks in the Garden Banks area of the U.S. Gulf of Mexico.
Sparta will feature a semi-submersible production host in a depth of more than 1,400m/4,700ft of water, initially with eight oil and gas producing wells.
Sparta’s design closely replicates the 100,000 barrel per day Vito and Whale designs, both of which are four-column semi-submersible host facilities. Vito is located in the greater Mars Corridor and began production in February 2023. Whale will be located in the Perdido corridor and is scheduled to come online in 2024.
Current estimated recoverable resource volumes of the primary Sparta development are 244 million boe. The estimate of resource volumes is currently classified as 2P under the Society of Petroleum Engineers’ Resource Classification System.
The estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.
Shell is the leading operator in the U.S. Gulf of Mexico.

Cautionary note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement, “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ”Subsidiaries”, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

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Shell’s net carbon intensity

Also, in this announcement we may refer to Shell’s “Net Carbon Intensity”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

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Forward Looking Non-GAAP measures

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