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Shell Partners With GATE for Sparta Commissioning Contract
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Shell plc’s(SHEL - Free Report) subsidiary, Shell Offshore Inc., has awarded the commissioning and construction management contract for the semi-submersible Sparta project to oilfield service provider GATE Energy. The Sparta project, the London-based super-major’s 15th deep-water host in the Gulf of Mexico, is being built following the successful legacy of the four-column semi-submersible host in the Vito and Whale facilities.
An Insight Into SHEL’s Sparta Project
Sparta, a deep-water development project in the U.S. Gulf of Mexico, is expected to begin production in 2028. It is jointly owned by Shell Offshore, holding 51% of the stake as an operator, and Equinor holding 49% of the stake through its Gulf of Mexico operations unit. It is expected to reach a peak output of about 90,000 barrels of oil equivalent per day with a recoverable resource volume potential of 244 million barrels of oil equivalent.
Sparta will move forward with innovation and sustainability in offshore operations. One of its standout features is all-electric topside compression equipment, which will reduce carbon emissions significantly. It also features a semi-submersible production host situated in waters over 1,400 meters deep, tapping into reservoirs with pressures up to 20,000 pounds per square inch.
An integrated engineering, procurement, construction and installation project for the development of Sparta in the Gulf of Mexico has also been awarded to TechnipFMC, in which the company will utilize high-pressure subsea production systems to execute the contract.
SHEL-GATE Energy’s Long-Standing Partnership
Through this contract, GATE Energy validates its long-standing partnership with SHEL and further aims to strengthen it by delivering full project life cycle support in the Sparta project. GATE has leveraged its global capabilities by successfully delivering various projects like Vito and Whale. Vito, located in the greater Mars Corridor, began its production in February 2023, while Whale, situated in the Perdido Corridor, is expected to commence operations in 2024.
SHEL’s Zacks Rank and Key Picks
London-based Shell is one of the primary oil super majors —a group of the U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).
Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS (earnings per share) growth rate for next year is 51.59%, which aligns favorably with the industry growth rate of 12.60%.
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.
Houston, TX-based Nine Energy Service, Inc. provides onshore completion and production services to unconventional oil and gas resource development. NINE’s expected EPS growth rate for the current quarter is 33.33%, which aligns favorably with the industry growth rate of 9.04%.
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Shell Partners With GATE for Sparta Commissioning Contract
Shell plc’s(SHEL - Free Report) subsidiary, Shell Offshore Inc., has awarded the commissioning and construction management contract for the semi-submersible Sparta project to oilfield service provider GATE Energy. The Sparta project, the London-based super-major’s 15th deep-water host in the Gulf of Mexico, is being built following the successful legacy of the four-column semi-submersible host in the Vito and Whale facilities.
An Insight Into SHEL’s Sparta Project
Sparta, a deep-water development project in the U.S. Gulf of Mexico, is expected to begin production in 2028. It is jointly owned by Shell Offshore, holding 51% of the stake as an operator, and Equinor holding 49% of the stake through its Gulf of Mexico operations unit. It is expected to reach a peak output of about 90,000 barrels of oil equivalent per day with a recoverable resource volume potential of 244 million barrels of oil equivalent.
Sparta will move forward with innovation and sustainability in offshore operations. One of its standout features is all-electric topside compression equipment, which will reduce carbon emissions significantly. It also features a semi-submersible production host situated in waters over 1,400 meters deep, tapping into reservoirs with pressures up to 20,000 pounds per square inch.
An integrated engineering, procurement, construction and installation project for the development of Sparta in the Gulf of Mexico has also been awarded to TechnipFMC, in which the company will utilize high-pressure subsea production systems to execute the contract.
SHEL-GATE Energy’s Long-Standing Partnership
Through this contract, GATE Energy validates its long-standing partnership with SHEL and further aims to strengthen it by delivering full project life cycle support in the Sparta project. GATE has leveraged its global capabilities by successfully delivering various projects like Vito and Whale. Vito, located in the greater Mars Corridor, began its production in February 2023, while Whale, situated in the Perdido Corridor, is expected to commence operations in 2024.
SHEL’s Zacks Rank and Key Picks
London-based Shell is one of the primary oil super majors —a group of the U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like ARC Resources Ltd. (AETUF - Free Report) , Flotek Industries, Inc. (FTK - Free Report) and Nine Energy Service, Inc. (NINE - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS (earnings per share) growth rate for next year is 51.59%, which aligns favorably with the industry growth rate of 12.60%.
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.
Houston, TX-based Nine Energy Service, Inc. provides onshore completion and production services to unconventional oil and gas resource development. NINE’s expected EPS growth rate for the current quarter is 33.33%, which aligns favorably with the industry growth rate of 9.04%.