We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SLB Secures Major Aramco Contracts, Expands Saudi Arabia Footprint
Read MoreHide Full Article
Key Takeaways
SLB won four Aramco contracts spanning three years & covering 450 wells, with two-year extensions available.
SLB will integrate planning, automated drilling, evaluation, fluids, cementing and completion services.
SLB's expanded Aramco work strengthens its Saudi presence and supports its technology-led service strategy.
SLB N.V. (SLB - Free Report) has strengthened its position in Saudi Arabia after securing four integrated well construction contracts from Aramco. The three-year agreements cover more than 450 wells and include options to extend for up to two additional years. The awards enhance SLB’s multi-year business visibility and strengthen its position in a key global oil and gas region.
Multi-Year Contracts Enhance Revenue Visibility
The contracts provide SLB with a sizable three-year work program spanning hundreds of wells. The optional extensions will lengthen the engagement, support sustained activity and improve long-term revenue visibility.
The large multi-year awards are significant because they provide a more predictable project pipeline and strengthen SLB’s presence in a market where upstream development remains a major strategic priority.
Integrated Model Enhances SLB’s Competitive Position
Under the contracts, SLB will manage the entire well construction process, bringing together planning, automated drilling, evaluation, fluids, cementing and completion services. Digital workflows will play a central role in improving efficiency and consistency across the program.
This integrated approach gives SLB greater participation across the well lifecycle rather than limiting its involvement to individual products or services. Broader service content per well can strengthen the economic value of major contract wins.
Aramco Relationship Supports Long-Term Growth of SLB
The awards build on decades of collaboration between SLB and Aramco and represent a significant expansion of SLB’s integrated well construction operations in Saudi Arabia.
For SLB investors, the contracts highlight continued demand for the company’s technology-led service model, strengthen its presence in a strategic international market and provide another source of multi-year business visibility. Rising adoption of integrated well delivery supports SLB’s long-term growth strategy across large-scale drilling programs.
SLB’s Zacks Rank & Key Picks
SLB currently carries a Zacks Rank #3 (Hold).
The Aramco contracts underscore the opportunities emerging from continued upstream investment, particularly across international markets. With West Texas Intermediate crude oil trading above the $90-per-barrel mark, according to Oilprice.com, favorable oil prices are likely to encourage exploration, drilling and production activity.
Higher upstream spending generally supports demand for oilfield equipment, drilling technologies and offshore services, benefiting companies with broad exposure to energy infrastructure and production activity.
Against this backdrop, investors may consider energy companies such as Baker Hughes Company (BKR - Free Report) , Oceaneering International, Inc. (OII - Free Report) and RPC, Inc. (RES - Free Report) . Baker Hughes, Oceaneering International and RPC provide equipment, technologies and services to upstream operators and are positioned to benefit from increased drilling activity and offshore spending.
View the Zacks #1 Rank List
Image: Bigstock
SLB Secures Major Aramco Contracts, Expands Saudi Arabia Footprint
Key Takeaways
SLB N.V. (SLB - Free Report) has strengthened its position in Saudi Arabia after securing four integrated well construction contracts from Aramco. The three-year agreements cover more than 450 wells and include options to extend for up to two additional years. The awards enhance SLB’s multi-year business visibility and strengthen its position in a key global oil and gas region.
Multi-Year Contracts Enhance Revenue Visibility
The contracts provide SLB with a sizable three-year work program spanning hundreds of wells. The optional extensions will lengthen the engagement, support sustained activity and improve long-term revenue visibility.
The large multi-year awards are significant because they provide a more predictable project pipeline and strengthen SLB’s presence in a market where upstream development remains a major strategic priority.
Integrated Model Enhances SLB’s Competitive Position
Under the contracts, SLB will manage the entire well construction process, bringing together planning, automated drilling, evaluation, fluids, cementing and completion services. Digital workflows will play a central role in improving efficiency and consistency across the program.
This integrated approach gives SLB greater participation across the well lifecycle rather than limiting its involvement to individual products or services. Broader service content per well can strengthen the economic value of major contract wins.
Aramco Relationship Supports Long-Term Growth of SLB
The awards build on decades of collaboration between SLB and Aramco and represent a significant expansion of SLB’s integrated well construction operations in Saudi Arabia.
For SLB investors, the contracts highlight continued demand for the company’s technology-led service model, strengthen its presence in a strategic international market and provide another source of multi-year business visibility. Rising adoption of integrated well delivery supports SLB’s long-term growth strategy across large-scale drilling programs.
SLB’s Zacks Rank & Key Picks
SLB currently carries a Zacks Rank #3 (Hold).
The Aramco contracts underscore the opportunities emerging from continued upstream investment, particularly across international markets. With West Texas Intermediate crude oil trading above the $90-per-barrel mark, according to Oilprice.com, favorable oil prices are likely to encourage exploration, drilling and production activity.
Higher upstream spending generally supports demand for oilfield equipment, drilling technologies and offshore services, benefiting companies with broad exposure to energy infrastructure and production activity.
Against this backdrop, investors may consider energy companies such as Baker Hughes Company (BKR - Free Report) , Oceaneering International, Inc. (OII - Free Report) and RPC, Inc. (RES - Free Report) . Baker Hughes, Oceaneering International and RPC provide equipment, technologies and services to upstream operators and are positioned to benefit from increased drilling activity and offshore spending.
BKR currently sports a Zacks Rank #1 (Strong Buy), while OII and RES carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.