Subsea7 Secures a New Contract for Shell's Kaikias Waterflood Project

Subsea7 S.A. SUBCY has been awarded a contract by Shell plc SHEL for its Kaikias Waterflood project in the Gulf of America. Per the terms of the contract, Subsea7 will be responsible for the transportation and installation of subsea equipment, including a subsea umbilical, riser and a rigid flowline for the Kaikias Waterflood project. The subsea infrastructure will be installed at water depths of up to 1,650 meters.

Subsea7 mentioned that the contract was a ‘sizeable’ one, which implies that its value lies between $50 million and $150 million. The project management and engineering tasks will be carried out from the company’s office in Houston, TX, starting immediately. The offshore activities are slated to begin in 2027.

SUBCY has stated that the contract award further enhances its long-standing relationship with Shell. The company looks forward to applying its extensive deepwater experience and knowledge toward developing the Kaikias project, enabling its client to optimize long-term value from the field.

Shell had taken a final investment decision on the waterflood project at the Kaikias field in December 2025. The project is aimed at increasing recoverable resources in the field by injecting water into the reservoir. The injected water sweeps the displaced oil toward adjacent production wells, aiding the extraction of these reserves.

SUBCY’s Zacks Rank and Other Key Picks

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

Some other top-ranked stocks from the energy sector are Oceaneering International OII and Archrock Inc. AROC, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

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This article originally published on Zacks Investment Research (zacks.com).

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