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SLB OneSubsea Wins Eni's Major Umbilical Contract for Offshore Growth
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Key Takeaways
SLB's OneSubsea wins a major umbilical contract for Eni's Kutei North Hub offshore Indonesia.
The project includes 94.6 kilometers of steel-tube umbilicals for water depths up to 2,200 meters.
SLB will use parallel production lines to shorten delivery times and improve manufacturing efficiency.
SLB N.V. (SLB - Free Report) has strengthened its deepwater business by securing a major contract through its OneSubsea joint venture from Eni North Ganal Limited for the Kutei North Hub development offshore East Kalimantan, Indonesia. Eni North Ganal Limited is a subsidiary of Searah Limited, which is a 50/50 joint venture between Eni S.p.A. (E - Free Report) and PETRONAS that focuses on developing upstream oil and gas assets in Southeast Asia.
Under the agreement, OneSubsea will engineer, procure and manufacture 94.6 kilometers of steel-tube umbilicals for water depths of up to 2,200 meters. The steel-tube umbilical system, weighing approximately 6,700 tons, ranks among the largest umbilical contracts awarded in the subsea industry and reinforces SLB's leadership in complex offshore developments.
The project showcases SLB's advanced manufacturing capabilities by combining its Oscilay and planetary production lines, enabling parallel production that shortens delivery timelines while improving manufacturing efficiency. The contract also includes production of a 30-kilometer continuous umbilical, weighing roughly 2,100 tons, designed to withstand pressures of 10,000 psi, highlighting SLB's technical expertise in demanding deepwater environments.
The award strengthens SLB's subsea order backlog while reinforcing its long-term partnership with E. As global energy companies continue investing in offshore natural gas developments to meet rising energy demand, advanced subsea infrastructure remains critical. SLB's technical expertise, manufacturing scale and execution capabilities position the company to capture additional deepwater opportunities, supporting higher cash flow generation. This contract is expected to strengthen SLB's business model and boost investor appeal in the coming years.
SLB currently carries a Zacks Rank #3 (Hold), while Eni has a Zacks Rank #5 (Strong Sell) at present.
By leveraging its fully integrated upstream and downstream operations across Canada and the United States, Cenovus consistently generates robust cash flow. To further expand production, CVE is advancing key optimization initiatives at Christina Lake North, Sunrise, West White Rose and Foster Creek.
National Energy Services Reunited delivers integrated drilling and reservoir services across the Middle East, North Africa and Asia-Pacific, helping producers maximize output and efficiency. With the rising global demand for electricity fueling a shift toward natural gas, NESR is well-positioned to capitalize on growing upstream energy investments.
View the Zacks #1 Rank List
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SLB OneSubsea Wins Eni's Major Umbilical Contract for Offshore Growth
Key Takeaways
SLB N.V. (SLB - Free Report) has strengthened its deepwater business by securing a major contract through its OneSubsea joint venture from Eni North Ganal Limited for the Kutei North Hub development offshore East Kalimantan, Indonesia. Eni North Ganal Limited is a subsidiary of Searah Limited, which is a 50/50 joint venture between Eni S.p.A. (E - Free Report) and PETRONAS that focuses on developing upstream oil and gas assets in Southeast Asia.
Under the agreement, OneSubsea will engineer, procure and manufacture 94.6 kilometers of steel-tube umbilicals for water depths of up to 2,200 meters. The steel-tube umbilical system, weighing approximately 6,700 tons, ranks among the largest umbilical contracts awarded in the subsea industry and reinforces SLB's leadership in complex offshore developments.
The project showcases SLB's advanced manufacturing capabilities by combining its Oscilay and planetary production lines, enabling parallel production that shortens delivery timelines while improving manufacturing efficiency. The contract also includes production of a 30-kilometer continuous umbilical, weighing roughly 2,100 tons, designed to withstand pressures of 10,000 psi, highlighting SLB's technical expertise in demanding deepwater environments.
The award strengthens SLB's subsea order backlog while reinforcing its long-term partnership with E. As global energy companies continue investing in offshore natural gas developments to meet rising energy demand, advanced subsea infrastructure remains critical. SLB's technical expertise, manufacturing scale and execution capabilities position the company to capture additional deepwater opportunities, supporting higher cash flow generation. This contract is expected to strengthen SLB's business model and boost investor appeal in the coming years.
SLB currently carries a Zacks Rank #3 (Hold), while Eni has a Zacks Rank #5 (Strong Sell) at present.
Some better-ranked stocks in the energy sector are Cenovus Energy Inc. (CVE - Free Report) and National Energy Services Reunited Corp. (NESR - Free Report) . CVE currently carries a Zacks Rank #2 (Buy) while NESR sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
By leveraging its fully integrated upstream and downstream operations across Canada and the United States, Cenovus consistently generates robust cash flow. To further expand production, CVE is advancing key optimization initiatives at Christina Lake North, Sunrise, West White Rose and Foster Creek.
National Energy Services Reunited delivers integrated drilling and reservoir services across the Middle East, North Africa and Asia-Pacific, helping producers maximize output and efficiency. With the rising global demand for electricity fueling a shift toward natural gas, NESR is well-positioned to capitalize on growing upstream energy investments.