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Schlumberger Gets $300M Contract from Woodside Energy

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Oilfield services provider Schlumberger Limited (SLB - Free Report) announced that it has been awarded an engineering, procurement and construction (EPC) contract totaling approximately $300 million from Woodside Energy Ltd. Per the agreement, Schlumberger will supply a subsea production system and a dual multiphase boosting system for the Greater Enfield Project, offshore northwest Australia.
Schlumberger, per the contract, would supply six horizontal SpoolTree subsea trees, six horizontal trees for the water injection system, and six multiphase meters. It will also provide a high-boost dual pump station with high-voltage motors, umbilical, topside, subsea controls and distribution, intervention and workover control systems, landing string, and installation and commissioning services.

Schlumberger is a leading oilfield services company that provides technology, project management and information services to the global oil and gas industry. The combination of its strong balance sheet, technological leadership and efficient management is expected to prove beneficial over the long term. The company recently concluded its acquisition of Cameron International Corporation. The deal created the industry’s first comprehensive drilling and production system, which is supported by Schlumberger’s expertise in instrumentation, data processing, control software, and system integration as well as Cameron’s wellhead and surface equipment, flow control and processing technology.

Moreover, Schlumberger’s efforts to increase its capacity in pressure pumping and strengthening deepwater activity in the Gulf of Mexico are likely to add to its revenues going forward. While hydraulic fracturing pricing and land drilling activity remain depressed throughout North America, the company has more than offset the negatives with its superior technology, internal efficiency gains and size.

Schlumberger currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Chevron Corp (CVX - Free Report) , Murphy USA Inc. (MUSA - Free Report) and ReneSola Ltd. (SOL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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