SLB, USA announces the awarding of contracts across Middle East Countries as part of its Second-Quarter 2024 Results.
Contract Awards
In the Kingdom of Saudi Arabia, Saudi Aramco awarded SLB a long-term contract for unconventional gas directional drilling services and drilling bits, in support of Aramco’s strategic goal to increase gas production by more than 60% by 2030, compared to 2021 levels. SLB will provide innovative fit-for-basin technologies, services, and best-in-class practices developed in collaboration with Aramco. Cutting edge technologies, including the NeoSteer™ at-bit-rotary-steerable system and unique drilling bits developed and manufactured in Saudi Arabia, complemented with Performance Live™ and advanced drilling automation will continue to deliver record-breaking performances and mitigate operation risks.
In Qatar, a customer awarded SLB a five-year contract for directional drilling, measurement-while-drilling, and logging-while-drilling services. The contract will extend the deployment of the GeoSphere HD™ high-definition reservoir mapping-while-drilling service and the GeoSphere 360™ 3D reservoir mapping-while-drilling service for proactive steering, waterfront identification, and acquisition of valuable information for subsurface modeling.
In Egypt, SLB received a contract to integrate well construction solutions and technologies for the exploration and appraisal of five wells targeting the eastern Mediterranean hub with opportunity to expand the contract to include more wells. SLB will provide leading shoe-to-shoe solutions, which include the use of the AxeBlade™ ridged diamond element bit cutter technology, Rhino™ multicycle hydraulic underreamers, SonicScope™ multipole sonic-while-drilling service, StethoScope™ formation pressure-while-drilling service, and Orbit™ rising stem ball valves.
Decarbonization
In United Arab Emirates, SLB and Abu Dhabi National Oil Company (ADNOC) Onshore successfully deployed the EcoShield™ low-carbon geopolymer cement-free system, paving the way to decarbonize cementing operations. This first deployment in Abu Dhabi eliminated conventional Class G cement and used sustainable, locally sourced materials during the cementing of conductor casing. This operation achieved an estimated 85% reduction in CO2 emissions compared with conventional conductor casing cement and represents a major milestone on the oil and gas industry’s path to net zero. Because of this success, ADNOC and SLB are looking to expand technology application in surface casing jobs and beyond.
DIGITAL
In Oman, ARA Petroleum Exploration and Production (ARA), part of the wider Zubair Corporation, awarded SLB a five-year contract to enhance ARA’s reservoir engineering capabilities. Aligning with its strategic goals to boost efficiency and productivity, SLB will help to maximize production from small fields with future discovery technologies. The partnership will integrate technologies to support business growth, provide insights on field development plans, and evaluate new discoveries. Advanced wellbore imaging in the Techlog™ wellbore software will increase subsurface understanding, Petrel™ subsurface software machine learning will improve modeling, and Intersect™ high-resolution reservoir simulator will deliver precise forecasting.
Revenue in the Middle East & Asia of $3.27 billion increased 6% sequentially due to increased sales of production systems and increased intervention and evaluation activity in Saudi Arabia. Higher digital revenue across the area and increased drilling in Iraq, United Arab Emirates, China, and East Asia also contributed to the sequential growth.
Year on year, revenue increased 24% due to higher drilling, intervention, and evaluation activity as well as increased sales of production systems in Saudi Arabia. Higher drilling in United Arab Emirates, Egypt, East Asia, Indonesia, and China, as well as the acquired Aker subsea business in Australia, also contributed to the year-on-year growth.
