Subsea 7 awarded 'substantial' contract between $150M & $300M

Subsea 7 awarded 'substantial' contract between $150M & $300M

Subsea 7, a leading provider of engineering and construction services for the offshore energy industry, has secured two significant contracts that could boost its financial performance. The company, known for its expertise in subsea structures and flowlines, has been awarded a contract worth between $300 million and $500 million by Norwegian state-owned energy company Equinor for the Fram Sør development project in Norway. Additionally, Subsea 7 has been hired by Shell Offshore Inc. for a three-year contract to provide underwater inspection and light construction vessel services across multiple offshore assets in the U.S. [1]

The contract with Equinor, announced on July 2, 2025, covers engineering, procurement, construction, and installation (EPCI) of subsea structures and flowlines. The scope includes the installation of 53 kilometers of production, gas lift, and water injection lines, as well as the installation of the umbilical system. The project is expected to commence engineering and project management activities immediately, with offshore installation activities scheduled for 2026, 2027, and 2028. The Fram Sør area, located 10-30 kilometers north of the Equinor-operated Troll C platform, will be connected to the existing Fram and Troll C infrastructure. The contract is subject to authority approval of the Plan for Development and Operations (PDO).

Erik Femsteinevik, Vice President for Subsea 7 Norway, commented on the award, stating, "This contract continues our long-standing collaboration with Equinor. The FEED study enabled Subsea7 to engage early in the field development process, optimizing design solutions and contributing to the final investment decision. We look forward to working closely with Equinor to deliver the Fram Sør development safely and efficiently."

In a separate announcement, Subsea 7 revealed its three-year contract with Shell Offshore Inc. to provide underwater inspection and light construction vessel services across multiple offshore assets in the U.S. Craig Broussard, Senior Vice President for Subsea7 Gulf of Mexico, expressed pride in the company's Inspection, Repair, and Maintenance (IRM) team's continued support for Shell's US operations. "We are proud that our IRM team in Houston will continue supporting Shell’s US operations by using advanced tools and technologies to ensure the reliability and maximize the performance of their offshore infrastructure," Broussard said.

These contracts come on the heels of several other significant assignments for Subsea 7, including an EPCI contract offshore Egypt for flexible pipelines, umbilicals, and associated subsea components, and an EPCI contract off Norway covering pipeline bundles, spools, protection covers, and tie-ins. Prior to these, the company secured a contract with ConocoPhillips for a FEED study for the Previously Produced Fields (PPF) development project offshore Norway, and a multimillion-dollar assignment with Shell Trinidad and Tobago for a recently green-lighted gas project.

Subsea 7's latest contracts underscore its growing presence in the global offshore energy market and its commitment to delivering high-quality services to its clients. The company's strategic alliances, such as the Subsea Integration Alliance (SIA) with SLB OneSubsea, further enhance its capabilities and market reach.

References:

[1] https://www.offshore-energy.biz/subsea7-hired-by-equinor-and-shell-under-two-new-contracts/