Shell Plc agreed on June 29 to acquire a 51% interest and operatorship in Equinor ASA’s North Platte deepwater development project in the U.S. Gulf of Mexico.

North Platte, discovered in 2012 by Cobalt International Energy, is located in the Garden Banks area in the subsalt Paleogene reservoir at depths of roughly 30,000 ft (9,100 m). France’s TotalEnergies SE, previously the operator of North Platte with a 60% stake, withdrew from the project in February, releasing all its equity to Norwegian oil major, Equinor.

Following the sale to U.K.-based Shell for undisclosed terms, Equinor will retain 49% interest in the project and transfer operatorship. To reflect the change, Equinor said the companies have agreed to rename the North Platte development to the Sparta development.

“Equinor has long-term view of Sparta as a high-quality project with a clear strategic fit for the company. Sparta will strengthen our position in the Gulf of Mexico as well as our overall role as a reliable energy supplier to the U.S.,” Chris Golden, senior vice president, U.S. upstream, exploration and production international, for Equinor, commented in a company release.

Since 2005, Equinor has built up a sizable position in the Gulf of Mexico, which the company believes to offer some of the highest value, lowest carbon intensity oil and gas production in the company’s portfolio, according to its release.

For Sparta, Equinor said it will now work closely with Shell to review the work that has been completed and to update the development plan. FEED has been matured for the project, the company added.

“This is a development opportunity that is expected to add significant value with lower carbon emissions intensity. We are pleased to welcome Shell and look forward to sharing our experience and technology to move this valuable project forward,” continued Golden in his statement.

Sparta straddles four blocks of the Garden Banks area, 275 kilometers (171 miles) off the coast of Louisiana in approximately 1,300 meters (4265 feet) of water depth. The Sparta transaction between Equinor and Shell is subject to customary conditions and authority approval.

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