SLB Lands Multi-Well Contracts in Saudi Arabia Despite Ongoing Conflict

SLB, formerly known as Schlumberger, has secured four multi-well contracts in Saudi Arabia to support further oil and gas developments. The company aims to deliver more than 450 wells within three years under these contracts. This news comes despite the ongoing conflict in the Middle East, which had a significant impact on SLB's revenue in the second quarter.

The four integrated well construction contracts are part of a larger effort by Saudi Arabia to increase its oil and gas production. According to Industrial Info Resources data, there are over 400 active capital Oil & Gas Production projects in Saudi Arabia, with a total investment value of nearly $41 billion. SLB's vice president, Steve Gassen, stated that the granting of these contracts reflects Aramco's confidence in their integrated model and capabilities.

The conflict in the Middle East has had a significant impact on SLB's revenue. In its earnings report for the second quarter, the company reported a 4% decline in regional revenue from the first quarter and a 14% year-over-year decline. The conflict has led to the shut-in of crude oil production in Iraq and QatarEnergy declaring force majeure on exports of liquefied natural gas (LNG).