Subsea 7 secures contract from Talos Energy for Sunspear development in Gulf of Mexico
Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) has been awarded a substantial contract by Talos Energy for the Sunspear development in Green Canyon Block 78, located in the Gulf of Mexico. The contract, valued between $50 million and $150 million, involves the subsea tie-back of a production well at Sunspear to the Prince platform, situated 12 kilometers to the north.
This project, set to be managed from Subsea 7’s Houston office, will see the installation of a flowline and related subsea equipment at a depth of 500 meters. Craig Broussard, Vice President for Subsea 7 Gulf of Mexico, expressed enthusiasm about the collaboration, stating, “This award further strengthens our strategic partnership with Talos Energy, enabling early-stage collaboration for faster, more predictable project delivery.” Offshore work for this project is scheduled to commence later this year.
Subsea 7 secures a contract worth up to $150 million with Talos Energy for offshore oil development in the Gulf of Mexico
The Sunspear exploitation well, drilled in July 2023, has confirmed the presence of commercial quantities of oil and natural gas. Talos Energy’s preliminary analysis revealed approximately 260 feet of gross true vertical thickness of oil pay, including 149 feet of net oil pay in the main target, aligning with pre-drill expectations. The production from this project is slated to be processed at the recently acquired Prince platform, with the first oil expected to be extracted within the next 18 to 24 months.
The partnership for this development includes Talos Energy with a 48.0% working interest, an entity managed by Ridgewood Energy Corporation holding 47.5%, and Houston Energy at 4.5%.
The strategic collaboration between Subsea 7 and Talos Energy not only underscores the ongoing investment and confidence in the energy sector’s capabilities within the Gulf of Mexico but also highlights the technological advancements in deepwater drilling and production. By leveraging Subsea 7’s expertise in subsea installations, this project promises to enhance the efficiency and productivity of oil and gas extraction processes, contributing significantly to the regional energy supply.