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
Gas Prices in a Summer of Discontent
2024-05-14 - In February, natural gas prices dropped below $2/MMBtu and stayed there. How is the market handling it, and when will the price pick back up?
The OGInterview: TG Natural Resources Rides LNG Wave
2024-03-01 - TG Natural Resources rides the LNG wave with its Rockcliff deal amid a shale consolidation boom.
Chesapeake Stockpiles DUCs as Doubts Creep in Over Southwestern Deal
2024-05-02 - Chesapeake Energy is stockpiling DUCs until demand returns through growth from LNG exports, power generation and industrial activity.
Turning Down the Volumes: EQT Latest E&P to Retreat from Painful NatGas Prices
2024-03-05 - Despite moves by EQT, Chesapeake and other gassy E&Ps, natural gas prices will likely remain in a funk for at least the next quarter, analysts said.
Midstream Builds in a Bearish Market
2024-03-11 - Midstream companies are sticking to long term plans for an expanded customer base, despite low gas prices, high storage levels and an uncertain political LNG future.