Stena Drilling will begin installing equipment needed for 20,000 psi operations on its seventh-gen Stena Evolution drillship starting in 2026, the contractor announced March 26.
The Stena Evolution drillship is capable of operating in water depths up to 12,000 ft and drilling depths up to 40,000 ft.
Stena Drilling, together with Shell and equipment supplier NOV, will start the installation of the 20,000 psi subsea blow-out preventer and other key equipment in 2026. When the new 20,000 psi equipment package is installed, the Stena Evolution will be able to perform completion operations in the Shell-operated Sparta Field in the U.S. Gulf of Mexico.
In May 2023, Shell awarded Stena Drilling a five-year contract for the Stena Evolution, starting operations in the second quarter of 2024.
The Sparta Field taps the Paleogene reservoir, and Shell reached final investment decision on developing the project in mid-December. The project features a 90,000 boe/d production semisubmersible, which is expected to go online in 2028.
Recommended Reading
FTC OKs Exxon-Pioneer Merger, but Bars Sheffield from Exxon’s Board
2024-05-02 - A megamerger between Exxon Mobil and Pioneer Natural Resources can proceed, but Pioneer Chairman Scott Sheffield is out, the Federal Trade Commission says.
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.
Analysts: Diamondback-Endeavor Deal Creates New Permian Super Independent
2024-02-12 - The tie-up between Diamondback Energy and Endeavor Energy—two of the Permian’s top oil producers—is expected to create a new “super-independent” E&P with a market value north of $50 billion.
Is Double Eagle IV the Most Coveted PE-backed Permian E&P Left?
2024-04-22 - Double Eagle IV is quietly adding leases and drilling new oil wells in core parts of the Midland Basin. After a historic run of corporate consolidation, is it the most attractive private equity-backed E&P still standing in the Permian Basin?
Dallas Fed Energy Survey: Permian Basin Breakeven Costs Moving Up
2024-03-28 - Breakeven costs in America’s hottest oil play continue to rise, but crude producers are still making money, according to the first-quarter Dallas Fed Energy Survey. The situation is more dire for natural gas producers.