Offshore contracting giant TechnipFMC has been awarded a contract by energy supermajor Shell for the first integrated engineering, procurement, construction, and installation project to use high-pressure subsea production systems rated up to 20,000 psi.
The company will manufacture and install subsea production systems, umbilicals, risers, and flowlines for Shell’s Sparta development in the Gulf of Mexico. No financial details were revealed except the company describing the deal as substantial which TechnipFMC defines to be between $250m and $500m.
The tree systems will be Shell’s first to be qualified for 20,000 psi applications and are engineered to meet the high-pressure requirements of this greenfield development.
Shell made a final investment decision for the Sparta project in December 2023. It is operated by Shell with a 51% stake while its only partner is Equinor with 49%.
At peak production of approximately 90,000 barrels of oil equivalent per day and currently has an estimated, discovered recoverable resource volume of 244 million boe. The project will be Shell’s 15th deepwater host in the Gulf of Mexico and is currently scheduled to begin production in 2028. Sparta will use previously used designs which is an enhanced replication of Vito and Whale projects. Sparta replicates about 95% of Whale’s hull and 85% of its topsides.
The development spans four Outer Continental Shelf blocks in the Garden Banks area of the US Gulf of Mexico and will feature a semi-submersible production host in a depth of more than 1,400m of water, initially with eight oil and gas-producing wells.
“Sparta will combine our leading-edge subsea technology with our proven integrated execution model, iEPCI, providing improved project economics. We are excited to be working with Shell on 20K technology,” said Jonathan Landes, president of subsea at TechnipFMC.