Subsea7 Bags New GOM Contract

Subsea7 SA has secured a contract from Talos Energy to service the Sunspear development in Green Canyon Block 78 in the Gulf of Mexico.

The project involves the subsea tie-back of one production well at Sunspear to the Prince platform, 7.5 miles (12 kilometers) to the north. Subsea7 will install the flowline and related subsea equipment at a water depth of 1640 feet (500 meters), the company said in a recent news release.

Subsea7 called the contract “sizeable,” which it defines as having a value between $50 million and $150 million.

Talos made a commercial discovery of oil and gas in July 2023 at the Sunspear prospect. The company’s preliminary post-drill analysis indicated approximately 260 feet of gross true vertical thickness of oil pay, including 149 feet of net oil pay in the main target in line with pre-drill expectations, as announced by the company. The company has a 48 percent working interest in the prospect, with Ridgewood Energy Corporation holding 47.5 percent and Houston Energy holding four percent.

Subsea7 said its Houston office will oversee project management and installation engineering, with offshore work scheduled to begin later in the year.

Craig Broussard, Vice President for Subsea7 Gulf of Mexico, said, “This award further strengthens our strategic partnership with Talos Energy, enabling early-stage collaboration for faster, more predictable project delivery”.

This is the second contract in the Gulf of Mexico that Subsea7 has won for the year. The company earlier secured a contract from Woodside Energy Group Ltd to provide installation services for the Trion development.

Trion, a greenfield development that would represent the first oil production from Mexico’s deepwater, is being developed by Woodside in a joint venture with Pemex. First oil production is targeted for 2028. The field is located approximately 18.6 miles (30 kilometers) south of the US-Mexico border and 111.8 miles (180 kilometers) away from the Mexican coastline.

Subsea7 said in an earlier statement that the contract is “large”, which the company defines as being between $300 million and $500 million. Project management and engineering will begin immediately from the company’s offices in the USA and Mexico, while offshore activities are expected to take place between 2026 and 2027.

The project involves a wet tree subsea system connected to an infield floating production unit (FPU). Subsea7 said it will be responsible for the engineering, construction, and installation of the subsea umbilicals, risers, and flowlines, as well as the associated subsea architecture.

Earlier in the month, the company also announced the award of another “sizeable” contract from an undisclosed company.

The contract will be recognized in the backlog of its Subsea and Conventional business unit in the second quarter, Subsea7 said, adding that the contract is subject to a final investment decision that is expected in the coming weeks. Offshore activities under the contract are scheduled for 2026, it noted.

Due to “contractual obligations,” Subsea7 did not share any other details about the contract.

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