Shell Awards a Subsea Contract for Aphrodite Gas Field to Subsea7

Shell plc SHEL, a London-based integrated oil and gas company, has officially awarded a subsea transportation and installation contract to Subsea 7 S.A. SUBCY, a Luxembourg-based oil and gas equipment and services company, for its Aphrodite gas development, situated in Trinidad and Tobago’s East Coast Marine Area. This deal marks a major milestone for the oil and gas industry in the region, focusing on the Aphrodite Gas Field, discovered in 2022 on Block 5a, which is set to contribute significantly to Shell's extensive portfolio in the country.Aphrodite Gas Field: A New Chapter for Trinidad and Tobago’s Energy SectorThe Aphrodite gas field, located in the East Coast Marine Area, is one of the most exciting developments in the country’s natural gas sector. The field is situated at depths reaching up to 290 meters in water, a technical challenge that Shell and Subsea7 are well-equipped to tackle. As part of its extensive regional operations, Shell is implementing a subsea tieback to existing infrastructure serving the Barracuda subsea network, which will play an important role in ensuring the efficient transportation and processing of gas to domestic and international markets.Project Overview and Strategic ImportanceThe development of the Aphrodite gas field is strategically important for Shell, marking a continuation of its longstanding commitment to the Trinidad and Tobago energy sector. The gas produced from the field will be exported via Shell’s Dolphin A platform, a key asset in its regional operations. From there, the gas will be sent to the National Gas Company of Trinidad and Tobago for domestic consumption and the Beachfield gas processing center for liquefied natural gas (“LNG”) exports to international markets.This project not only strengthens Shell’s gas production capacity in the region but also underlines its growing role in the global LNG market, providing a reliable source of energy to meet the increasing demand worldwide.Subsea7’s Role: Expertise in Subsea Engineering and InstallationSubsea7, a leading engineering, construction and services provider for the energy industry, has been contracted to oversee the project management, engineering and offshore operations for the Aphrodite gas field development. This award is a testament to Subsea7's expertise in handling large-scale subsea projects and its growing presence in Latin America and the Caribbean region.Engineering and Project Management: Setting the Stage for Successful ExecutionThe engineering and project management phase for Subsea7 will begin at its Houston office, with offshore operations expected to follow in 2027. The project management phase will involve detailed planning, including developing the subsea installation system, transportation logistics and integrating the subsea tieback with the existing infrastructure. Subsea7’s global expertise in managing complex subsea operations, combined with its commitment to safety and predictable project delivery, will be key to the success of the Aphrodite gas field development.The offshore operations, slated for 2027, will require Subsea7 to utilize its extensive fleet and advanced technology to install subsea equipment, including pipelines, wellheads and production systems. The company’s ability to carry out large-scale subsea installations efficiently and safely is an essential component of Shell’s strategic vision for the Aphrodite Field.Strategic Importance of the East Coast Marine AreaThe East Coast Marine Area has long been a central hub for Shell’s gas production in Trinidad and Tobago. The region is home to some of the company's largest and most efficient fields, such as Bounty, Dolphin, Endeavour and Starfish. These fields have contributed significantly to Shell’s gas reserves in the country and the addition of the Aphrodite field further strengthens its presence in this vital area.As one of the key players in Trinidad and Tobago’s natural gas sector, Shell’s investments in the East Coast Marine Area demonstrate a commitment to long-term, sustainable energy development. By expanding its portfolio with the Aphrodite gas field, Shell ensures its competitive edge in both regional and global energy markets, particularly in the growing LNG sector.First Gas and Peak Production ProjectionsShell expects the Aphrodite gas field to commence production in 2027, with the first gas anticipated to be delivered within the same year. The project is expected to reach peak production of 18,400 barrels of oil equivalent per day (BOE/D). It will be a significant contributor to Shell’s production capacity in the region. This projected peak production will play a key role in meeting both domestic and international energy demands, reinforcing the strategic importance of the field.The offshore gas reserves in Trinidad and Tobago are among the most important in the Caribbean and the successful development of the Aphrodite field will be crucial in maintaining the country’s status as a leading energy exporter.Partnership Built on Trust and EfficiencyThe partnership between Shell and Subsea7 is a testament to the growing collaboration between energy companies and contractors in the region. According to Craig Broussard, senior vice president of Subsea7 Gulf of Mexico, engaging with Shell from the outset has been critical in building trust and fostering efficiencies in the project’s development. He highlighted that the Aphrodite project reflects Subsea7's commitment to safe, efficient and reliable project delivery, while also supporting local talent and resources in Trinidad and Tobago.Project Value and SignificanceThis contract has been classified as a large-scale deal, with an estimated value between $50 million and $150 million. The value of the contract highlights the technical complexity and scale of the project. The strategic importance of the Aphrodite gas field, combined with Subsea7's capabilities, makes this a significant milestone in the development of Trinidad and Tobago's offshore energy assets.Conclusion: A Bright Future for Trinidad and Tobago’s Gas IndustryThe contract between Shell and Subsea7 for the Aphrodite gas field development marks a significant step forward for the region’s energy sector. With Subsea7’s engineering expertise and Shell’s commitment to sustainable energy production, the development of the Aphrodite field is poised to contribute substantially to both domestic and international energy markets. As the project moves forward, this highlights the ongoing importance of Trinidad and Tobago in the global natural gas landscape, ensuring its place as a leading energy producer for years to come.SHEL's Zacks Rank & Key PicksCurrently, SHEL has a Zacks Rank #4 (Sell), while SUBCY flaunts a Zacks Rank #1 (Strong Buy).Investors interested in the energy sector might look at some better-ranked stocks like Global Partners GLP, which sports a Zacks Rank #1, and RPC, Inc. RES, holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Global Partners is valued at $1.82 billion. It is a diversified energy logistics and marketing company that engages in the purchase, sale and transportation of petroleum products, renewable fuels and propane to a variety of customers, including wholesalers, retailers and commercial clients. Operating through three key segments—Wholesale, Gasoline Distribution and Station Operations (GDSO), and Commercial—Global Partners provides a range of services such as convenience store operations, car washes and custom blended fuels.RPC is valued at $1.02 billion. The company provides a wide range of oilfield services and equipment to support the exploration, production and maintenance of oil and gas wells globally. RPC operates through Technical Services—offering pressure pumping, cementing, and well control—and Support Services, which rents tools and provides pipe handling and inspection.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want 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 Global Partners LP (GLP): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): 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