Subsea 7 Secures Major Contract for Chevron’s Gorgon Stage 3 Expansion

LUXEMBOURG – December 16, 2025 – Subsea 7 S.A. today confirmed it has been awarded a substantial contract by Chevron Australia for complex subsea installation work on the Gorgon Stage 3 (GS3) Project, a critical expansion of one of the world's largest natural gas developments located off the coast of Western Australia. The contract, which the company defines as being valued between $150 million and $300 million, reinforces Subsea 7's strategic position in the Asia-Pacific energy market and deepens its long-standing relationship with the energy major.

The award tasks the offshore engineering leader with a comprehensive scope of work that includes project management, engineering, procurement, fabrication, transportation, installation, and pre-commissioning of essential subsea infrastructure. The deepwater operations, set in a challenging environment at approximately 1,350 meters, are scheduled to commence in 2028.

A Strategic Win Bolstering a Record Backlog

This contract award arrives during a period of exceptional financial strength for Subsea 7, underscoring the sustained global demand for complex offshore energy projects. The company recently reported a record-breaking order backlog nearing $14 billion, fueled by a strong order intake that provides high revenue visibility well into 2026. The Gorgon Stage 3 award will be a significant addition to this backlog, further solidifying investor confidence and the company's future revenue stream.

Project management and engineering will begin immediately, coordinated from Subsea 7’s office in Perth, Australia, with additional support from its international teams in Kuala Lumpur and Paris. This global collaboration highlights the logistical complexity and high-level expertise required to execute such a project.

David Bertin, Senior Vice President for Subsea 7 Global Projects Centre East, commented on the award in the company's official announcement. “This project marks an important milestone and reinforces our long-term strategic engagement with Chevron,” he stated. “Building on our local and international capability and experience, we look forward to working collaboratively with Chevron Australia – focusing on safety and quality to optimise reliability, technical integrity and offshore operations – to successfully deliver the Gorgon Stage 3 subsea installation.”

Engineering the Abyss: The Gorgon Stage 3 Challenge

The Gorgon Project is a cornerstone of Australia's economy and a significant contributor to the global liquefied natural gas (LNG) market. The overall facility, located on the environmentally sensitive Barrow Island, has a production capacity of 15.6 million tonnes of LNG per year. The $3 billion Gorgon Stage 3 expansion is designed not to increase this capacity, but to maintain it by developing new gas fields to backfill the original, now-depleting reservoirs.

Subsea 7's work will be central to connecting the new Geryon and Eurytion gas fields to Gorgon’s existing subsea infrastructure. This involves drilling six new offshore wells and installing the intricate network of equipment required to transport the gas from the seabed to the onshore processing facility. The 1,350-meter water depth presents significant engineering hurdles, demanding advanced remotely operated vehicle (ROV) technology, specialized vessel capabilities, and meticulous planning to ensure the integrity and reliability of the subsea systems over their operational lifespan. This contract win is a testament to Subsea 7's recognized expertise in navigating such challenging deepwater environments.

It is notable that other major contractors, such as TechnipFMC, have also been awarded significant contracts for different components of the project, indicating Chevron's strategy of leveraging multiple specialists for this multi-faceted subsea development.

Fuelling the Western Australian Economy

Beyond its technical significance, the Gorgon Stage 3 project is set to provide a major economic boost for Western Australia. Chevron has committed to spending approximately half of the project's $3 billion budget locally, a move that will ripple through the state's supply chain. The expansion is expected to create an estimated 800 construction jobs, providing direct employment opportunities and supporting the broader resources sector, which underpins a significant portion of the state's economy.

The state's oil and gas industry is a critical source of revenue, employment, and energy, with natural gas generating 60% of Western Australia's electricity. The decision to base project management in Perth further cements the city's status as a premier hub for energy sector engineering and management in the region, fostering high-skilled job growth and local expertise.

Operating in a Complex Environmental Landscape

While the contract is a clear win for Subsea 7 and a boon for the local economy, the Gorgon Project itself operates under intense environmental scrutiny. A key condition of its original approval was the implementation of the world's largest commercial-scale Carbon Capture and Storage (CCS) system, designed to inject underground the CO2 that is naturally present in the gas reservoirs.

However, the CCS facility has been a source of significant controversy, having consistently and substantially underperformed against its mandated targets since its inception in 2019. According to analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) and other watchdog groups, the project has failed to capture and store its promised 4 million tonnes of CO2 annually, leading to millions of tonnes of excess emissions. Critics have labeled the CCS component an expensive failure, raising broader questions about the viability of the technology as a primary climate change mitigation tool for the fossil fuel industry.

This challenging ESG context means that as Subsea 7 and other contractors begin their work for Gorgon Stage 3, their operations will be closely watched. The project highlights the persistent tension between the world's continued demand for reliable energy, the economic benefits of large-scale resource development, and the urgent need to meet climate targets and protect sensitive ecosystems.