Oil Giants Shell & Equinor Reach Sparta Investment Decision: Set To Boost Gulf Of Mexico Oil Output
Portfolio Pulse from Lekha Gupta
Equinor ASA (EQNR) and Shell PLC (SHEL) have made a Final Investment Decision for Sparta, a deep water development in the Gulf of Mexico. Shell owns 51% and Equinor 49% of Sparta, which is expected to produce 90,000 boe/d at peak and begin production in 2028. Sparta will be Shell's 15th deep-water host in the region and will feature all-electric topside compression equipment. Equinor's Q3 2023 production in the Gulf was 149,000 boe/d. SHEL shares are up 0.58% premarket.
December 20, 2023 | 1:06 pm
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POSITIVE IMPACT
Equinor ASA has a 49% stake in the Sparta project, which is expected to significantly contribute to its production capacity when it begins in 2028.
The investment in Sparta is likely to be viewed positively as it expands Equinor's portfolio and promises future production growth. However, the impact is medium-term, as production is set to begin in 2028.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Shell PLC, owning a 51% majority in the Sparta project, is set to enhance its deep-water portfolio in the Gulf of Mexico, with shares trading higher premarket.
Shell's majority stake in the Sparta project and the premarket share price increase suggest a positive short-term impact. The project aligns with Shell's strategic focus on efficient and competitive deep-water developments.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80