Koil Energy Wins Key West Africa Contract Amid Offshore Investment Boom

HOUSTON, TX – March 11, 2026 – Houston-based Koil Energy Solutions Inc. has secured a significant contract for a deepwater development in West Africa, a move that underscores the region's persistent role as a global hub for offshore oil and gas investment. The company, which trades on the OTCQB market under the ticker KLNG, announced it will provide a suite of critical services for an undisclosed international oil company.

The project involves the installation and pre-commissioning of multiple subsea umbilical systems, which will be tied back to an existing deepwater field. This type of brownfield expansion is indicative of a broader industry trend where operators are maximizing output from established assets. Koil Energy's comprehensive scope of work includes engineering, project management, specialized rental equipment, and the deployment of both onshore and offshore support personnel. Mobilization for the project is slated for the second half of 2026.

"This contract is a recognition of our company’s capabilities of delivering mission-critical services to deepwater developments internationally," said Erik Wiik, CEO of KOIL Energy, in a statement. "It is also a testament to our teams’ expertise in testing of advanced deepwater systems and helping customers bring production online efficiently and safely."

A Strategic Win in a Competitive Arena

For a smaller, specialized firm like Koil Energy, winning a "significant contract" against a backdrop of industry giants such as TechnipFMC and Subsea 7 is a major validation of its business strategy and technical niche. While the financial terms were not disclosed, the award provides a substantial boost to the company's project pipeline and reinforces its position as a key service provider in the complex subsea market.

Koil Energy, founded in 1997, has cultivated a reputation for expertise in the full life cycle of subsea equipment, particularly the umbilicals, flexible pipes, and power cables that act as the lifelines of offshore production facilities. The company’s ability to offer an integrated package—combining engineering, project management, and field-proven testing equipment—allows it to compete effectively. This contract highlights how specialized expertise can create a decisive advantage, enabling smaller public companies to secure pivotal roles in large-scale international energy projects.

This award is expected to have a positive impact on the company’s financials. For context, Koil Energy reported a 27% rise in revenues to $5.2 million in the third quarter of 2024, driven by similar subsea equipment contracts. An award described as "significant" suggests a considerable addition to its future revenue stream, strengthening investor confidence as the company prepares for project mobilization later in the year.

West Africa's Enduring Offshore Importance

The contract arrives as West Africa experiences a major resurgence in offshore exploration and development. Despite the global dialogue around energy transition, the region remains a critical source of oil and gas to meet medium-term global demand. Industry analysts forecast that Africa will be the world's most active region for high-impact exploration drilling in 2026, accounting for approximately 40% of such wells planned globally.

Upstream investment across the continent is projected to reach $41 billion in 2026, with a strong focus on the deepwater and ultra-deepwater prospects along the Atlantic margin. Nations like Nigeria and Angola continue to be cornerstones of production, with major international oil companies expanding their deepwater footprints. Chevron, for instance, is advancing its deepwater presence in Nigeria and Angola, while newer players like Energean are entering the market by acquiring assets, signaling the region's dynamic appeal for both established majors and ambitious independents.

Koil Energy's contract is a direct result of this sustained investment. The project, a tie-back to an existing field, reflects a strategic approach by operators to leverage existing infrastructure to boost production efficiently. This requires the sophisticated installation monitoring and pre-commissioning services that Koil specializes in, ensuring new systems are integrated flawlessly and safely with operational assets.

The Technical Edge in Deepwater Operations

The core of this contract lies in the highly technical services required for deploying subsea umbilical systems in challenging deepwater environments. These umbilicals are complex bundles of steel tubes, electrical cables, and fiber optics that provide the hydraulic power, electrical signals, and chemicals needed to control subsea wells from a remote platform or onshore facility. Their successful installation and commissioning are paramount to a project's success.

Koil Energy's role encompasses the entire logistical and technical chain, from load-out and transit to monitoring the installation and conducting pre-commissioning tests. This process ensures the integrity and functionality of the umbilical systems before the wells are brought online. The company leverages what it calls "high-performance methodologies" and over 25 years of experience in managing the intricate handling and spooling of subsea cables.

This deepwater specialization is a key differentiator. As oil and gas exploration moves into deeper and more remote waters, the demand for companies with a proven track record in managing these complex systems grows. The successful execution of such projects not only prevents costly delays and technical failures but also accelerates the client's path to first oil, delivering value that extends far beyond the contract's initial scope. This latest award solidifies Koil Energy's reputation as a trusted partner for mission-critical operations in the world's most demanding offshore arenas.