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Subsea7 Secures String Music Development Contract in the U.S. Gulf
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Key Takeaways
SUBCY landed a "sizeable" $50-$150M deal for String Music in the U.S. Gulf.
Work spans flowline EPC and subsea tie-back to Delta House at up to 1,850 meters water depth.
Project starts in Houston now; offshore begins 2027, boosting a $13.5B backlog with $5.5B due in 2026.
Subsea7 S.A. (SUBCY - Free Report) announced that it has secured a contract to work for the String Music development in the U.S. Gulf. The contract has been awarded by Murphy Exploration & Production Company, an affiliate company of Murphy Oil. SUBCY mentioned that the contract was “sizeable,” which implies that its value lies between $50 million and $150 million.
The scope of the contract covers engineering, procurement, construction and installation of a production flowline responsible for transporting hydrocarbons from the field to the processing facility. The contract also includes installation of associated subsea structures and equipment that will tie back the String Music oil and gas development to the Delta House development in the Mississippi Canyon 431. Water depth at the site can range up to 1,850 meters.
The company has stated that project management and engineering work associated with the project is slated to begin immediately from its Houston office. The offshore activities are scheduled to begin in 2027. This contract further adds to the project backlog, providing revenue visibility in the future. At the end of the first quarter, SUBCY had a high-quality project backlog of $13.5 billion, of which $5.5 billion is expected to be executed in 2026.
Subsea7 has stated that this contract with Murphy Exploration & Production will strengthen its collaboration and allow the companies to work closely to develop a more standardized project delivery approach that should enhance reliability and efficiency. Further, it will help fast-track the project execution across other fields and developments, including the String Music development in the Gulf of America.
Valero Energy is a leading refining player with a robust network of 14 refineries located across the United States, Canada and Peru. The company has a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstock, convert it into higher-value products and shift product yields according to market conditions.
Cenovus Energy Inc. is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada. The strategic MEG Energy acquisition is expected to boost Cenovus Energy's production levels in 2026.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its future production prospects, which is expected to enhance its revenues.
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Subsea7 Secures String Music Development Contract in the U.S. Gulf
Key Takeaways
Subsea7 S.A. (SUBCY - Free Report) announced that it has secured a contract to work for the String Music development in the U.S. Gulf. The contract has been awarded by Murphy Exploration & Production Company, an affiliate company of Murphy Oil. SUBCY mentioned that the contract was “sizeable,” which implies that its value lies between $50 million and $150 million.
The scope of the contract covers engineering, procurement, construction and installation of a production flowline responsible for transporting hydrocarbons from the field to the processing facility. The contract also includes installation of associated subsea structures and equipment that will tie back the String Music oil and gas development to the Delta House development in the Mississippi Canyon 431. Water depth at the site can range up to 1,850 meters.
The company has stated that project management and engineering work associated with the project is slated to begin immediately from its Houston office. The offshore activities are scheduled to begin in 2027. This contract further adds to the project backlog, providing revenue visibility in the future. At the end of the first quarter, SUBCY had a high-quality project backlog of $13.5 billion, of which $5.5 billion is expected to be executed in 2026.
Subsea7 has stated that this contract with Murphy Exploration & Production will strengthen its collaboration and allow the companies to work closely to develop a more standardized project delivery approach that should enhance reliability and efficiency. Further, it will help fast-track the project execution across other fields and developments, including the String Music development in the Gulf of America.
SUBCY’s Zacks Rank and Key Picks
SUBCY currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Valero Energy (VLO - Free Report) , Cenovus Energy (CVE - Free Report) and W&T Offshore (WTI - Free Report) . While Valero and Cenovus each sport a Zacks Rank #1 (Strong Buy) at present, W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero Energy is a leading refining player with a robust network of 14 refineries located across the United States, Canada and Peru. The company has a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstock, convert it into higher-value products and shift product yields according to market conditions.
Cenovus Energy Inc. is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada. The strategic MEG Energy acquisition is expected to boost Cenovus Energy's production levels in 2026.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its future production prospects, which is expected to enhance its revenues.