Under the contract, TechnipFMC will manufacture and install subsea production systems, umbilicals, risers, and flowlines for the offshore oil project
Shell awards iEPCI contract to TechnipFMC for the Sparta offshore development in the US. (Credit: TechnipFMC)
TechnipFMC has won an integrated engineering, procurement, construction, and installation (iEPCI) contract from Shell for the Sparta deepwater development project in the US Gulf of Mexico.
The energy industry contractor did not reveal the exact value of the contract but indicated it to be between $250m and $500m.
The contract will enable the Sparta deepwater project to utilise high-pressure subsea production systems rated up to 20K.
Under the contract, TechnipFMC will manufacture and install subsea production systems, umbilicals, risers, and flowlines for the offshore oil project.
According to TechnipFMC, the tree systems will be Shell’s first to be qualified for 20K applications and are engineered to meet the high-pressure requirements of the Sparta development.
TechnipFMC subsea president Jonathan Landes said: “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.”
Spread over four outer continental shelf (OCS) blocks in the Garden Banks area, the Sparta offshore project features a semi-submersible production host in a depth of over 1,400m of water, initially with eight oil and gas producing wells.
Shell’s subsidiary Shell Offshore is the operator of the field with a 51% stake. The remaining 49% is held by Equinor’s subsidiary Equinor Gulf of Mexico.
The deepwater development project is estimated to reach a peak production of nearly 90,000 barrels of oil equivalent per day (boe/d).
The Sparta project currently has an estimated, discovered recoverable resource volume of 244 million boe. The production is scheduled to commence in 2028.
Shell and Equinor achieved the final investment decision (FID) on the Sparta deepwater development in December 2023.