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Subsea7 Announces Major Project Under Agreement With Aramco

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Key Takeaways

  • {\"0\":\"Subsea7 won a major Aramco contract for offshore pipeline installation and facility modifications.\",\"1\":\"The deal includes 106 km of infield and export pipelines plus topside modifications and hook-up activities.\",\"2\":\"Engineering begins immediately, with offshore activities set to start between 2027 and 2028.\"}

Subsea7 S.A. (SUBCY - Free Report) has received a new project under its long-term agreement (LTA) with Saudi Arabia’s energy giant Aramco. Per the terms of the new contract, Subsea7 will cover the engineering, procurement, construction and installation of the infield and export pipelines spanning 106 kilometers at the offshore facilities. Furthermore, SUBCY will carry out topside modifications and associated hook-up tasks to ensure seamless operations at the facilities offshore Saudi Arabia.

The company will commence engineering and project-management activities immediately from its offices in Saudi Arabia and the United Arab Emirates. The related offshore activities are expected to begin between 2027 and 2028. The exact financial details of the contract remain undisclosed. However, Subsea7 mentioned that the contract is a major one, indicating its value lies between $750 million and $1.25 billion. Subsea7 stated that the new contract, secured under its long-term agreement with Aramco, strengthens its long-standing relationship with the latter.

SUBCY’s Zacks Rank & Key Picks

Currently, SUBCY carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Repsol S.A. (REPYY - Free Report) , Antero Midstream Corporation (AM - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) . While Repsol sports a Zacks Rank #1 (Strong Buy), Antero Midstream and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.

Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. This suggests that Repsol is positioning itself in line with global energy transition needs.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

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