Seatrium has bagged its first newbuilding contract of 2024 with an order from oil major Shell to build a semi-submersible floating production unit (FPU).
The contract includes the construction and integration of the hull, topsides and living quarters of the Sparta FPU. Financial terms were not disclosed.
The Sparta FPU will be situated in the Garden Banks area of the US Gulf of Mexico, approximately 275 km (171 miles) off the coast of Louisiana.
It will feature a single topside bolstered by a four-column, semi-submersible floating hull and is designed to produce 90,000 barrels of oil equivalent per day (boe/d).
The two-level topside for Sparta will be integrated and lifted to the hull using Seatrium’s Goliath twin cranes capable of lifting up to 30,000 tonnes.
The Sparta is the third FPU newbuild Shell has awarded to Seatrium following the deliveries of the Vito and Whale FPUs.
Vito is located in the greater Mars Corridor and began production in February 2023, while the Whale will be stationed in the Perdido corridor and is scheduled to come online in 2024.
The platform will feature all-electric compression equipment, allowing for significantly reduced emissions intensity from production.
William Gu, executive vice president and head of oil & gas international of Seatrium, said: “We are fully committed to executing the project well, including the single lift operation and fabrication of the FPU to meet its 20,000-psi design for use in harsh weather conditions.”
Shell and project partner Equinor recently announced the final investment decision (FID) for Sparta, which is scheduled to begin production in 2028.
The oil major said the Sparta showcases its “cost-efficient development approach” through standardised, simplified host designs, first utilised at the Vito development and later replicated at the Whale development.
An enhanced replication of Vito and Whale, Sparta replicates about 95% of Whale’s hull and 85% of Whale’s topsides, Shell added.
Sparta also marks Shell’s first development in the Gulf of Mexico to produce from reservoirs with pressures up to 20,000 pounds per square inch.
“Seatrium’s new order pipeline appears to have decent upside potential, especially for energy transition projects,” UOB Kay Hian analysts said in a report last month.
“It has a blue-chip client base and a wide range of production centric products such as FPSOs, FLNG vessels and wind turbine installation vessels, and thus will focus on quality orders going forwards.”
