Subsea 7 Secures Major Contract from Shell Offshore for Sparta Deepwater Development
Luxembourg City, Luxembourg – April 4, 2025
Subsea 7 S.A. (SUBC, SUBCY), a leading international subsea engineering, construction, and services company, announced today the award of a significant contract by Shell Offshore Inc. for the Sparta deepwater development in the US.
Details of the Contract
Subsea 7 will be responsible for the engineering, procurement, construction, and installation (EPCI) of subsea production systems, umbilicals, risers, and flowlines for the Sparta deepwater development. The project is located in the Gulf of Mexico, approximately 200 miles south of New Orleans, Louisiana.
Impact on Subsea 7
This contract is a significant win for Subsea 7, as it reinforces the company’s position as a leading player in the deepwater sector. The award comes on the back of a successful track record in executing complex deepwater projects, including the Tortue/Ahmeyim project offshore Mauritania and Senegal. The contract is expected to contribute positively to Subsea 7’s revenue and earnings for the upcoming fiscal year.
Impact on the Energy Industry
The Sparta deepwater development is part of Shell’s broader strategy to expand its presence in the Gulf of Mexico and increase its production capacity from deepwater reserves. The project is expected to add approximately 100,000 barrels of oil equivalent per day (boe/d) to Shell’s production portfolio, making it a significant contributor to the company’s overall production growth.
Furthermore, the award of the contract to Subsea 7 underscores the continued demand for subsea engineering, construction, and services in the energy industry. With the increasing focus on deepwater exploration and production, companies like Subsea 7 are poised to benefit from the growing demand for their services.
Environmental Considerations
Subsea 7 and Shell Offshore are committed to executing the project in a safe and environmentally responsible manner. The companies will adhere to all applicable regulations and guidelines, including those related to the protection of marine life and the prevention of oil spills. Additionally, Subsea 7 will utilize its advanced technologies and innovative solutions to minimize the environmental footprint of the project.
Conclusion
Subsea 7’s award of the contract for the Sparta deepwater development by Shell Offshore is a significant milestone for both companies. The project is expected to contribute positively to Subsea 7’s financial performance and reinforce its position as a leading player in the deepwater sector. Furthermore, it underscores the continued demand for subsea engineering, construction, and services in the energy industry, particularly in the context of deepwater exploration and production.
From an environmental perspective, the project will be executed in a safe and responsible manner, with a focus on minimizing the environmental footprint. The successful execution of the project will not only benefit Subsea 7 and Shell Offshore but also contribute to the broader energy industry’s efforts to increase production capacity from deepwater reserves in a sustainable manner.
- Subsea 7 secures significant contract from Shell Offshore for Sparta deepwater development
- Company to engineering, procurement, construction, and installation of subsea production systems, umbilicals, risers, and flowlines
- Project located in the Gulf of Mexico, approximately 200 miles south of New Orleans, Louisiana
- Expected to add approximately 100,000 boe/d to Shell’s production portfolio
- Reinforces Subsea 7’s position as a leading player in the deepwater sector
- Continued demand for subsea engineering, construction, and services in the energy industry
- Project to be executed in a safe and environmentally responsible manner
