Equinor and Shell Approve Sparta Project to Boost Gulf of Mexico Production

Philippe Mathieu, executive vice president for Exploration and Production International.
(Sheyda Aalgaard / Equinor)

(IN BRIEF) Equinor and Shell Offshore Inc. have jointly made the final investment decision for the Sparta deepwater development in the US Gulf of Mexico. Equinor holds a 49 percent stake in the project, which is expected to produce up to 100,000 barrels of oil equivalent per day, starting in 2028. The development plan includes eight production wells tied to a floating production unit, with a design based on successful projects. The platform will have a low carbon footprint, thanks to all-electric compression equipment. This investment reaffirms Equinor’s commitment to long-term energy supply in the US, while emphasizing environmental responsibility in energy production. Equinor continues to expand its US portfolio with offshore wind and low-carbon solutions projects.

(PRESS RELEASE) STAVANGER, 20-Dec-2023 — /EuropaWire/ —  Equinor ASA (OSE:EQNR, NYSE:EQNR), an oil, gas, wind and solar energy company active in more than 30 markets globally, in collaboration with its operating co-owner, Shell Offshore Inc., a subsidiary of Shell plc, has reached the pivotal final investment decision for the Sparta deepwater development, strategically located in the US Gulf of Mexico (GOM). Equinor holds a significant 49 percent interest in this promising field.

Designed to achieve a peak capacity of 100,000 barrels of oil equivalent per day (boe/d), Sparta is poised to commence production in 2028. The project boasts an impressive estimated ultimate recoverable resource potential exceeding 250 million barrels.

The comprehensive development blueprint encompasses the installation of eight production wells, all linked to a semi-submersible floating production unit. Notably, the Sparta platform mirrors the design principles of the successful Shell-operated Vito and Whale projects, showcasing a standardized and cost-effective approach.

Philippe Mathieu, Executive Vice President for Exploration and Production International at Equinor, expressed enthusiasm about the milestone, stating, “We are pleased to reach this important milestone and advance the Sparta development together with Shell. 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.”

Sparta’s significance extends beyond its productive potential, as it will serve as a pivotal hub in a crucial producing region, delivering valuable barrels to Equinor with relatively low average carbon emissions. To further bolster its environmental credentials, the platform will be equipped with all-electric compression equipment, substantially reducing emissions intensity during production.

In the third quarter of 2023, Equinor delivered an impressive 149,000 barrels of oil equivalent per day from ten producing assets in the US Gulf of Mexico. The company remains committed to exploring new opportunities and expanding its growing US portfolio, which includes offshore wind and low-carbon solutions projects, aligning with its commitment to sustainable and efficient energy production.

Facts about Sparta

• Originally discovered in 2012
• Project located 171 miles (275 kilometers) offshore Louisiana, straddling four blocks if the Garden Banks area of the US Gulf of Mexico
• Shell Offshore Inc., a subsidiary of Shell plc, is the operator (51.0%) with Equinor (49.0%) as partner.
• Eight subsea wells tied back to a semi-submersible floating production unit with a designed peak production capacity of 100,000 barrels of oil equivalent per day.
• Water depth of approximately 4,300 feet (1,310 meters)
• Reservoir depth of approximately 30,000 feet (9,100 meters)

Media contact:

Sissel Rinde
Vice president Media relations
Corporate affairs
sisr@equinor.com
+47 412 60 584

SOURCE: Equinor ASA