Seatrium awarded Shell’s deep-water oil production project

SEATRIUM has won a contract by Shell to construct a deep-water newbuild project in the US Gulf of Mexico.

Under the contract, Seatrium will construct and integrate the hull, topsides and living quarters of Shell’s Sparta semi-submersible Floating Production Unit (FPU), which is designed to produce 90,000 barrels of oil equivalent per day, said the engineering solutions provider on Tuesday (Jan 2).

The contract follows a letter of intent dated Aug 28, which stated that the development is 51 per cent owned by Shell and 49 per cent owned by Norwegian energy company Equinor.

The development will be located in the Garden Banks area of the US Gulf of Mexico, about 275 kilometres off the coast of Louisiana.

William Gu, executive vice-president and head of oil and gas international of Seatrium, said the company is committed to executing the project, including the fabrication of the FPU, to meet its design specifications for use in harsh weather conditions.

“We are deeply honoured that Shell has awarded Sparta, the third FPU newbuild, to Seatrium, following the successful deliveries of the Vito and Whale FPUs,” Gu noted.

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Seatrium shares closed flat at S$0.118 on Friday.