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Subsea7 (SUBCY) Secures Talos' Sunspear Development Contract
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Subsea7(SUBCY - Free Report) has been awarded a contract by Talos Energy Inc. (TALO - Free Report) for the Sunspear development in the Green Canyon Block 78. The offshore contract in the U.S. Gulf of Mexico is described as a “sizeable” contract, implying that it is valued in the range of $50-$150 million.
The project entails connecting one production well at Sunspear to the Prince platform, which is located 12 km to the north, through the subsea tieback. Subsea7 will be responsible for the installation of the flowline and associated subsea equipment at a depth of 500 meters underwater.
SUBCY’s Houston office will be responsible for the management of the project and its installation engineering. The offshore operations are scheduled to begin later this year. The contract for Sunspear development came to the subsea engineering firm months after it signed a three-year strategic agreement with Talos. The agreement is focused on developing innovative commercial solutions for subsea engineering, procurement, construction and installation projects in the Gulf of Mexico shelf.
In July 2023, Talos discovered commercial quantities of oil and natural gas while drilling the Sunspear exploitation well. The preliminary post-drill analysis revealed approximately 260 feet of gross true vertical thickness of oil pay, including 149 feet of net oil pay in the main target. These figures were consistent with Talos’ pre-drill expectations.
TALO also highlighted its plans to tie the discovery to the Prince platform in August 2023. The first oil production is expected within 18 to 24 months. The Prince TLP is located in Ewing Bank block 1003. The platform, installed in August 2001 to be operated in water depths of 1,490 feet (454 meters), was initially designed for a 20-year lifespan. However, life extension studies were conducted to assess the possibility of extending its service life by an additional 15 years.
Subsea7 has stated that this contract award further solidifies its partnership with Talos, facilitating early-stage collaboration for faster, more predictable project delivery.
Zacks Rank and Key Picks
Currently, SUBCY carries a Zacks Rank #3 (Hold), while TALO has a Zacks Rank #5 (Strong Sell).
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Hess Midstream LP owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
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Subsea7 (SUBCY) Secures Talos' Sunspear Development Contract
Subsea7(SUBCY - Free Report) has been awarded a contract by Talos Energy Inc. (TALO - Free Report) for the Sunspear development in the Green Canyon Block 78. The offshore contract in the U.S. Gulf of Mexico is described as a “sizeable” contract, implying that it is valued in the range of $50-$150 million.
The project entails connecting one production well at Sunspear to the Prince platform, which is located 12 km to the north, through the subsea tieback. Subsea7 will be responsible for the installation of the flowline and associated subsea equipment at a depth of 500 meters underwater.
SUBCY’s Houston office will be responsible for the management of the project and its installation engineering. The offshore operations are scheduled to begin later this year. The contract for Sunspear development came to the subsea engineering firm months after it signed a three-year strategic agreement with Talos. The agreement is focused on developing innovative commercial solutions for subsea engineering, procurement, construction and installation projects in the Gulf of Mexico shelf.
In July 2023, Talos discovered commercial quantities of oil and natural gas while drilling the Sunspear exploitation well. The preliminary post-drill analysis revealed approximately 260 feet of gross true vertical thickness of oil pay, including 149 feet of net oil pay in the main target. These figures were consistent with Talos’ pre-drill expectations.
TALO also highlighted its plans to tie the discovery to the Prince platform in August 2023. The first oil production is expected within 18 to 24 months. The Prince TLP is located in Ewing Bank block 1003. The platform, installed in August 2001 to be operated in water depths of 1,490 feet (454 meters), was initially designed for a 20-year lifespan. However, life extension studies were conducted to assess the possibility of extending its service life by an additional 15 years.
Subsea7 has stated that this contract award further solidifies its partnership with Talos, facilitating early-stage collaboration for faster, more predictable project delivery.
Zacks Rank and Key Picks
Currently, SUBCY carries a Zacks Rank #3 (Hold), while TALO has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the energy sector are Archrock Inc. (AROC - Free Report) and Hess Midstream LP (HESM - Free Report) . Archrock presently sports a Zacks Rank #1 (Strong Buy), while Hess Midstream carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Hess Midstream LP owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.