Subsea7 Wins Major Contract for Sakarya Gas Field Development

Subsea7 S.A. SUBCY, a leading provider of subsea engineering and construction services to the offshore energy segment, has secured another contract from the Turkish Petroleum Offshore Technology Center (“TP-OTC”) to work on the Sakarya field, offshore Turkey. The contract involves the development of Phase 3 of the Sakarya field in the Black Sea.

Per the terms of the deal, Subsea7’s scope of work covers engineering, procurement, construction and installation of key components, which include subsea umbilicals, risers and flowlines. These components support the reliability of subsea production systems. The company noted that this is a major contract, which means that its value lies between $750 million and $1.25 billion. The exact financial details of the deal have not been disclosed.

The company mentioned that engineering activities and project management will begin immediately. These activities will be managed from the Subsea7 office in Istanbul, Türkiye. This contract highlights Subsea7’s successful record in managing and delivering complicated offshore energy projects efficiently. Phase 3 of the Sakarya gas field development strengthens ties with TP-OTC, leverages prior experience in Türkiye, and underscores the company’s commitment to advancing energy infrastructure and supporting the country’s energy independence goals.

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, Antero Midstream Corporation AM and Galp Energia SGPS SA GLPEY. 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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This article originally published on Zacks Investment Research (zacks.com).

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