Seatrium’s wholly-owned subsidiary, Seatrium Oil and Gas International, has signed a letter of intent (LOI) with Shell Offshore to provide construction work services for Shell’s Sparta project in the US Gulf of Mexico.
The project is a deep-water development located some 170 miles off the Louisiana coast. The development measures some 4,300 sq ft. It is 51%-owned by Shell and 49%-owned by Equinor. Both parties are said to be “progressing the project toward a final investment decision” which is expected to come later in 2023.
The Sparta floating production unit is a replicable project between Shell and Seatrium and leverages the latter’s topsides single lift integration methodology.
The final contract award is subject to the final investment decision by Shell and Equinor.
It is not expected to have any material impact on Seatrium’s earnings for the FY2023 ending Dec 31.
As at 10am, shares in Seatrium are trading 0.1 cent higher or 0.7% up at 14.3 cents.
