Shell (LON:SHEL) has picked Seatrium (SGX:S51) to provide another floating production unit (FPU) for a project in the US Gulf of Mexico.
Seatrium has signed a letter of intent with Shell Offshore, the Singapore builder reported, for infrastructure on the Sparta project.
The FPU would consist of a single topside module, supported by a four-column semisubmersible floating hull. Shell and Equinor would need to take the final investment decision (FID) on Sparta to trigger Seatrium’s work.
The companies should reach FID later in 2023, Seatrium said.
Sparta is a deepwater project around 170 miles off Louisiana. Shell has a 51% stake in the development, while Equinor has 49%.
The FPU would follow the same model as the Vito and Whale facilities, with Seatrium involved in both.
© Supplied by SeatriumThe company held a naming ceremony for the Whale FPU on August 25, at its Tuas Boulevard Yard in Singapore. The FPU consists of a topside module and semisubmersible hull.
Seatrium said the Whale project was an “outstanding example” of its “deep engineering expertise and successful project delivery capabilities. The Whale FPU is expected to play a critical role in meeting the growing demand for sustainable energy in the Gulf of Mexico region.”
Shell took the FID on Vito in April 2018 and Seatrium delivered the Vito FPU in December 2021. The Singaporean company has talked about how it has used its experience on this project to accelerate the work on the Whale FPU.
Worley won the front-end engineering and design (FEED) work on Sparta in May this year.
TotalEnergies was involved in the project, when it was known as North Platte. The French company pulled out in 2022, with Shell buying in to the project later that year under a deal with Equinor.
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