Engineering group Subsea7 has announced the award of a subsea installation contract for “umbilical + rigid flowline” systems as part of the Buckskin South expansion project, located in deepwater in the United States Gulf. The project is operated by LLOG Exploration Offshore, a long-standing player in the region, with offshore execution planned between 2026 and 2027. The contract, classified as “sizeable” within the $50mn to $150mn range, marks a significant commercial milestone for Subsea7 in the North American market.
A brownfield project with limited development risk
Buckskin South builds on the existing infrastructure of the Buckskin field, located in the Keathley Canyon area. The development is structured as a “tieback” to the Lucius platform, limiting the need for new heavy investments. This configuration leverages existing connectivity while adding production volumes through new subsea tie-ins. Project partners include Repsol, Beacon Offshore Energy, Ridgewood Energy and Navitas Petroleum, alongside LLOG.
Federal regulatory context supports the timeline
The restart of offshore lease sales by the Bureau of Ocean Energy Management (BOEM) strengthens the long-term attractiveness of subsea projects. The multi-year federal leasing plan, along with the scheduled BBG2 and BBG3 campaigns in 2026, reduces uncertainty for developers. This dynamic supports LLOG’s strategy, currently in the process of being acquired by Harbour Energy in a $3.2bn transaction, with closing expected in Q1 2026.
Strategic locking of installation capacity
The contract awarded to Subsea7 covers the installation of umbilicals and rigid pipelines at depths reaching 2,100 metres. The operation requires rigorous logistical planning in a market where access to specialised vessels remains constrained. Securing a 2026–2027 execution window serves as a key lever to mitigate operational risks for LLOG and its partners.
Indirect effects of the Harbour–LLOG transaction
The contract announcement follows shortly after the Harbour Energy acquisition of LLOG. This award may help reinforce production and free cash flow trajectories ahead of final integration. As an extension of an already-producing asset, the Buckskin South project avoids the risks of greenfield developments while enhancing the value of existing infrastructure.
Increased visibility for Subsea7 in North America
For Subsea7, this contract strengthens its backlog in a strategic basin at a time when it is preparing to merge with Italian company Saipem. The continued collaboration with LLOG, already a client on the Salamanca project, enhances operational continuity and builds on shared project experience. The announcement, disclosed as a regulated communication, reflects a material level of commercial and industrial significance.
