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Subsea7 to Begin Work on Substantial Subsea Contract Offshore Norway

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Key Takeaways

  • Subsea7 secured a substantial EPCI subsea contract from an undisclosed client offshore Norway.
  • The deal includes pipeline bundle fabrication, spools, protection covers, and subsea tie-ins.
  • Project management starts now, with offshore execution by Subsea7's fleet scheduled for 2025-2027.

Subsea7 S.A. (SUBCY - Free Report) announced that it has secured a substantial contract from an undisclosed client offshore Norway. The contract covers the engineering, procurement, construction, and installation (EPCI) of subsea infrastructure. However, the company has not disclosed the financial details of the contract. According to Subsea7, the “substantial” contract is valued between $150 million and $300 million.

SUBCY will be responsible for the construction and installation of pipeline bundles and spools, which should support the transportation of fluids. Additionally, the contract covers the engineering and installation of protection covers that safeguard the subsea infrastructure from damage, and tie-ins used to connect the pipelines with the associated subsea equipment. These activities will be executed using key subsea vessels from the company’s advanced fleet.

The company mentioned that the fabrication of the pipeline bundles will be completed in Wester, Scotland, and the project management and engineering work will be conducted from its offices at Stavanger, Norway, and Aberdeen, Scotland. The project management and engineering activities are slated to begin immediately. The offshore work related to this project is scheduled for 2025-2027.

Subsea7 mentioned that it shall leverage its past and current experiences to enhance its collaboration with clients. The company stated that its involvement in the field development process in the early stages enables it to assist the client in streamlining design solutions that are cost-effective and easy to implement. This can help the client reach a positive final investment decision on the project.

SUBCY’s Zacks Rank & Key Picks

SUBCY currently carries a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the energy sector are Flotek Industries Inc. (FTK - Free Report) , Oceaneering International (OII - Free Report) and RPC, Inc. (RES - Free Report) . While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, Oceaneering International and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to its shareholders through consistent dividend payments and share buybacks, making it an attractive choice for investors seeking steady returns.

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