Equinor sells Gulf of Mexico field project operation to Shell

Equinor has agreed to sell to Shell 51% of its interest in the North Platte deep water development project in the US Gulf of Mexico, the companies said on Thursday.

Equinor will retain 49% interest in the project, and Shell will become the new operator of the field, and to reflect the change, Equinor and Shell have agreed to rename the North Platte development to the Sparta development, they said.

Located nearly 275 km off the coast of Louisiana in approximately 1,300 meters of water depth, Sparta straddles four blocks of the Garden Banks area with front-end engineering and design (FEED) matured for the project. Equinor and Shell will now work closely to review the work that has been completed and to update the development plan, they said.

“Equinor has long-term view of Sparta as a high-quality project with a clear strategic fit for the company. Sparta will strengthen our position in the Gulf of Mexico as well as our overall role as a reliable energy supplier to the US,” Chris Golden, Senior Vice President, US Upstream, Exploration and Production International at Equinor, said in a statement.

“This is a development opportunity that is expected to add significant value with lower carbon emissions intensity. We are pleased to welcome Shell and look forward to sharing our experience and technology to move this valuable project forward,” he said.

Since 2005, Equinor has built up a sizable position in the Gulf of Mexico, which offers some of the highest value, lowest carbon intensity oil and gas production in the company’s portfolio.