Subsea7 S.A. (SUBCY Quick QuoteSUBCY - Free Report) has secured a new contract with LLOG Exploration, a subsidiary of the U.K.-based Harbour Energy, for the Who Dat East development in the Gulf of America. The company mentioned that it is a “sizeable” contract, implying that its value is between $50 million and $150 million.

Per the terms of the contract, the company is responsible for the fabrication, transportation and installation of subsea infrastructure. This includes a 29-kilometer steel catenary riser and a pipe-in-pipe pipeline that will transport hydrocarbons from the subsea wells to the existing Who Dat floating production system. The company will also install umbilicals and subsea controls at the development. The field is located at water depths of approximately 1,300 meters.

The LLOG-operated Who Dat East project in the Gulf of America is a one-well development. The project involves the completion of the 2024 Who Dat East discovery well and the construction of a 29-kilometer pipeline to the floating production system. In addition, the project includes making small upgrades to the production facility. The other partners in the project include Karoon Energy and Westlawn Americas Offshore.

Subsea7 has stated that the project management and engineering tasks will start immediately at its Houston office. The offshore activities are scheduled to start in 2028. The company highlighted that the new contract strengthens its relationship with LLOG Exploration. It intends to continue supporting LLOG’s U.S. Gulf projects and enable it to generate greater value from these developments.

This contract further adds to SUBCY’s high-quality project backlog, which stood at $13.6 billion at the end of the second quarter, providing future revenue visibility. Of the $13.6 billion backlog, the company has stated that $3.9 billion is expected to be executed within 2026. 

SUBCY’s Zacks Rank & Other Key Picks

SUBCY currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the energy sector are Par Pacific Holdings (PARR Quick QuotePARR - Free Report) , Valero Energy (VLO Quick QuoteVLO - Free Report) and Galp Energia SGPS SA (GLPEY Quick QuoteGLPEY - Free Report) . While Par Pacific and Valero sport a Zacks Rank #1 (Strong Buy) each, Galp Energia carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.

Valero Energy is a leading refining player with a robust network of 14 refineries and 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 feedstocks, convert them into higher-value products and shift product yields according to market conditions.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It is engaged in refining and marketing of oil products and natural gas marketing and sales.