Shell Awards a Contract to Subsea 7 for its Sparta Deepwater Project

Shell plc’s SHEL subsidiary Shell Offshore Inc. has awarded a significant contract to offshore engineering and services player Subsea 7 S.A. SUBCY for its Sparta deepwater development, located in the U.S. Gulf of Mexico. The project is centered at Garden Banks block 959, off Louisiana's southeastern coast, where waters reach depths of up to 1,635 meters.The contract, classified as “sizeable,” will be valued between $50 million and $150 million and will involve transportation and installation of a floating production system. Engineering and project management are slated to begin immediately from Subsea 7’s Houston office, while offshore operations are slated to begin in 2027.An Insight Into SHEL’s Sparta Deepwater ProjectThe Sparta project is London-based supermajor SHEL’s 15th deep-water host in the Gulf of Mexico, which is being built following the successful legacy of the four-column semi-submersible host in the Vito and Whale facilities. The company made the final investment decision for Sparta in December 2023.The Sparta Project, which is expected to begin production in 2028, is jointly owned by SHEL, holding 51% of the stake as an operator and Equinor,holding the remaining 49% of the stake through its Gulf of Mexico operations unit. It is expected to reach a peak output of about 90,000 barrels of oil equivalent per day (boe/d) with a recoverable resource volume potential of 244 million barrels of oil equivalent.Shell, currently carrying a Zacks Rank #3 (Hold),will follow a replication model, where the company will reuse about 95% of the Whale FPU’s hull and 85% of its topsides. This strategy not only accelerates deployment but also reinforces cost efficiency in high-stakes offshore developments. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.An integrated engineering, procurement, construction and installation project for the development of Sparta in the Gulf of Mexico has also been awarded to TechnipFMC, in which the company will utilize high-pressure subsea production systems to execute the contract.SHEL-SUBCY’s PartnershipThis contract between the two companies validates Subsea 7’s long-standing partnership with Shell, including the recent joint successes, such as the Vito development. This partnership highlights Subsea 7’s growing influence in deepwater infrastructure projects across the region.Key PicksInvestors interested in the energy sector might look at some top-ranked stocks like Expand Energy Corporation EXE and Prairie Operating Co. PROP.The U.S.-based Expand Energy is a leading natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. The Zacks Consensus Estimate for EXE’s 2025 earnings indicates 422.70% year-over-year growth.Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources. The Zacks Consensus Estimate for PROP’s 2025 earnings indicates 334.29% year-over-year growth.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Subsea 7 SA (SUBCY): Free Stock Analysis Report Prairie Operating Co. (PROP): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report Expand Energy Corporation (EXE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks