By Sabrina Valle
HOUSTON (Reuters) – Shell PLC and Equinor ASA on Tuesday greenlit a 90,000 barrels per day (bdp) oil and gas platform in the U.S. Gulf of Mexico, with first production scheduled to start in 2028.
Called Sparta, it is the first Gulf of Mexico project launched under Shell Chief Executive Wael Sawan, who earlier this year pulled back on the company’s energy transition plans to boost profits from oil.
Shell holds a 51% stake and will operate the platform with Equinor holding the remaining share. The project originally was called North Platte and operated by TotalEnergies, which left the project in 2022.
The investment was not disclosed.
In a prior role as director of Shell’s upstream business, Sawan oversaw the U.S. Gulf 100,000 barrel per day (bpd) Whale project, which is set to start production next year with partner Chevron Corp.
Shell has been investing to increase oil and gas production in the U.S. Gulf after reducing elsewhere. Before rising to CEO, Sawan oversaw Shell’s divestment in the U.S. shale basin, which helped the company largely achieve a previous goal to cut oil output by 20% by 2030.
This year, Shell and Equinor started production at the 100,000 bpd Vito oil platform, the model for both the subsequent Whale and Sparta projects.
Sparta will be Shell’s 15th project in the Gulf of Mexico.
(Reporting by Sabrina Valle)
