Shell moves forward with Sparta project in Gulf of Mexico | Business - The Advocate

Shell moves forward with Sparta project in Gulf of Mexico | Business | theadvocate.com

Shell is officially moving forward with its Sparta deepwater project in the Gulf of Mexico, the petrochemical giant announced Tuesday.

It’s the second final investment decision — when a company secures financing for a major project — on a Gulf project this year for Shell. The London conglomerate also confirmed in March that it will push ahead with its Dover project.

Shell also launched its Vito platform in February and plans to establish another Gulf deepwater development, Whale, in 2024.

The 15th Gulf deepwater location from Shell, Sparta is expected to come online in 2028. At its peak, it will produce roughly 90,000 barrels per day of crude oil from reservoirs with an estimated 244 million barrels of recoverable supply under up to 20,000 pounds per square inch of pressure.

Sparta is located in the Garden Banks area of the Gulf, the northern border of which is located about 120 miles from southwest Louisiana’s coast, according to federal maps.

It is an “enhanced replication” of Shell’s Vito and Whale platforms, which were designed to produce up to 100,000 barrels per day while reducing carbon dioxide emissions and project costs, the company said. Dover, meanwhile, should produce about 21,000 barrels per day.

“Shell’s latest deepwater development demonstrates the power of replication, driving greater value from our advantaged positions,” Zoë Yujnovich, Shell’s integrated gas and upstream director, said in a statement. “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.”

Shell owns 51% of Sparta. The other 49% is owned by Equinor Gulf of Mexico LLC.

Shell officials declined to divulge a price tag for Sparta.