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SLB OneSubsea Secures Rovuma Basin Subsea Production Systems Deal
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Key Takeaways
SLB's OneSubsea secured a Rovuma LNG contract covering subsea equipment and installation services.
SLB plans a Mozambique services base to support Rovuma LNG and other regional subsea projects.
SLB's deepwater exposure could benefit from rising spending on offshore and LNG developments.
SLB N.V. (SLB - Free Report) has strengthened its deepwater portfolio after its OneSubsea joint venture secured a contract from ExxonMobil Moçambique for the first phase of the Rovuma liquefied natural gas (“LNG”) project offshore Mozambique. The award reinforces SLB’s position in large-scale subsea developments and expands its exposure to growing LNG investment.
Rovuma Award Expands SLB’s Backlog
The contract covers subsea trees, manifolds, umbilicals and control systems, along with engineering, procurement, manufacturing and installation services. The extensive project scope strengthens SLB’s opportunity to generate revenues across engineering, equipment supply and installation activities.
Mozambique Base Extends SLB’s Regional Reach
SLB OneSubsea intends to establish a service base in Mozambique, expanding its local operating footprint. The facility is expected to support Rovuma LNG while creating opportunities to serve other regional operators and future subsea developments.
Deepwater Activity Supports SLB’s Outlook
The contract underscores continued investment in deepwater developments, where SLB maintains a strong presence in subsea engineering and production systems. Rising spending on offshore and LNG projects is expected to support demand for the company’s technology and equipment offerings, strengthening its growth prospects and enhancing its appeal to investors.
SLB’s Zacks Rank & Key Picks
SLB currently carries a Zacks Rank #3 (Hold).
With West Texas Intermediate crude oil trading around the $90-per-barrel mark, according to Oilprice.com and global LNG demand continuing to rise, the backdrop remains favorable for the broader energy sector. Higher crude prices can strengthen upstream cash flows, while growing LNG demand supports investment in gas production, infrastructure and export projects, encouraging continued spending on drilling, completion and production activities.
This environment is likely to benefit upstream players such as Equinor ASA (EQNR - Free Report) as well as oilfield service providers like Baker Hughes Company (BKR - Free Report) and National Energy Services Reunited Corp. (NESR - Free Report) . BKR and NESR currently sport a Zacks Rank #1 (Strong Buy) each, while EQNR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Equinor has more direct exposure to crude-price movements through its upstream production portfolio. The company plans to allocate about 90% of its capital spending to oil and gas and is targeting production growth through 2030, positioning EQNR to benefit from a firm commodity-price environment.
Baker Hughes is a global energy technology company providing oilfield services, gas technology, industrial equipment and digital solutions across the energy value chain. BKR has secured several offshore and subsea contracts, including a subsea production systems award for the Kutei Northern Hub development offshore Indonesia and multi-year drilling and well-services extensions with Equinor in the North Sea. The company has received production enhancement and stimulation work from bp, along with subsea-related awards tied to projects in Angola and Brunei.
National Energy Services Reunited is positioned to benefit from elevated crude prices, which can support upstream spending across the Middle East and North Africa. NESR secured $300 million of contracts in Kuwait across Production Services and Drilling & Evaluation, strengthening its revenue visibility and reinforcing its presence in a key oil-producing market.
View the Zacks #1 Rank List
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SLB OneSubsea Secures Rovuma Basin Subsea Production Systems Deal
Key Takeaways
SLB N.V. (SLB - Free Report) has strengthened its deepwater portfolio after its OneSubsea joint venture secured a contract from ExxonMobil Moçambique for the first phase of the Rovuma liquefied natural gas (“LNG”) project offshore Mozambique. The award reinforces SLB’s position in large-scale subsea developments and expands its exposure to growing LNG investment.
Rovuma Award Expands SLB’s Backlog
The contract covers subsea trees, manifolds, umbilicals and control systems, along with engineering, procurement, manufacturing and installation services. The extensive project scope strengthens SLB’s opportunity to generate revenues across engineering, equipment supply and installation activities.
Mozambique Base Extends SLB’s Regional Reach
SLB OneSubsea intends to establish a service base in Mozambique, expanding its local operating footprint. The facility is expected to support Rovuma LNG while creating opportunities to serve other regional operators and future subsea developments.
Deepwater Activity Supports SLB’s Outlook
The contract underscores continued investment in deepwater developments, where SLB maintains a strong presence in subsea engineering and production systems. Rising spending on offshore and LNG projects is expected to support demand for the company’s technology and equipment offerings, strengthening its growth prospects and enhancing its appeal to investors.
SLB’s Zacks Rank & Key Picks
SLB currently carries a Zacks Rank #3 (Hold).
With West Texas Intermediate crude oil trading around the $90-per-barrel mark, according to Oilprice.com and global LNG demand continuing to rise, the backdrop remains favorable for the broader energy sector. Higher crude prices can strengthen upstream cash flows, while growing LNG demand supports investment in gas production, infrastructure and export projects, encouraging continued spending on drilling, completion and production activities.
This environment is likely to benefit upstream players such as Equinor ASA (EQNR - Free Report) as well as oilfield service providers like Baker Hughes Company (BKR - Free Report) and National Energy Services Reunited Corp. (NESR - Free Report) . BKR and NESR currently sport a Zacks Rank #1 (Strong Buy) each, while EQNR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Equinor has more direct exposure to crude-price movements through its upstream production portfolio. The company plans to allocate about 90% of its capital spending to oil and gas and is targeting production growth through 2030, positioning EQNR to benefit from a firm commodity-price environment.
Baker Hughes is a global energy technology company providing oilfield services, gas technology, industrial equipment and digital solutions across the energy value chain. BKR has secured several offshore and subsea contracts, including a subsea production systems award for the Kutei Northern Hub development offshore Indonesia and multi-year drilling and well-services extensions with Equinor in the North Sea. The company has received production enhancement and stimulation work from bp, along with subsea-related awards tied to projects in Angola and Brunei.
National Energy Services Reunited is positioned to benefit from elevated crude prices, which can support upstream spending across the Middle East and North Africa. NESR secured $300 million of contracts in Kuwait across Production Services and Drilling & Evaluation, strengthening its revenue visibility and reinforcing its presence in a key oil-producing market.