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Subsea7 (SUBCY) Lands EPCI Contract for Murlach Development

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Subsea7 (SUBCY - Free Report) has secured an engineering, procurement, construction and installation (EPCI) contract for the Murlach development located in the UK North Sea. The contract was awarded by the energy major, BP. The Murlach development is situated 240 kilometers to the east of Aberdeen in the North Sea.

The contract includes the design and installation of subsea pipelines and production systems. Subsea7 has been tasked with the installation of a rigid flowline (spanning 8 kilometers) and two flexible jumpers. The new flowline will be connected to the Eastern Trough Area Project facility.

The project involves the deployment of OneSubsea’s standard vertical monobore tree systems. The technology is expected to increase the efficiency of the process via vessel deployment, which will reduce the usage of drill rigs. The contract also includes two vertical monobore trees alongside a 2-slot manifold and related topside controls. The contract marks the first use of this technology in the region.

Subsea7 has mentioned that pipeline fabrication for the project will be carried out at the Vigra spoolbase in Norway. The offshore work for the contract is scheduled to take place in 2025.

The Murlach development contract is SUBCY’s third fully integrated EPCI agreement with BP. It also highlights Subsea7’s continued partnership with BP in the North Sea region.

Zacks Rank and Key Picks

Currently, SUBCY carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , TechnipFMC plc (FTI - Free Report) and Northern Oil and Gas, Inc. (NOG - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while TechnipFMC and Northern Oil and Gas carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a record high of $13.9 million in the second quarter of 2024, indicating a year-over-year increase of 4.51%. This ensures strong revenue growth for the company in the future.

Northern Oil and Gas is an independent upstream company involved in the acquisition, exploration and production of oil and natural gas assets. Its operations are concentrated in three leading basins of the United States, namely the Williston, Permian and the Appalachian Basin. The company has recently acquired additional assets in the Uinta Basin that is driving growth by expanding its asset base and increasing production. 

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