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SLB SLB, a leading energy technology company worldwide, has signed a string of deals with the British energy giant Shell plc SHEL to support its deepwater and ultra-deepwater assets. The energy technology firm has won major drilling contracts from Shell in the U.K. North Sea, the U.S. Gulf of Mexico and Trinidad and Tobago, among other regions.
These projects will leverage SLB’s AI-enabled digital drilling tools and technology and its extensive knowledge and experience of working in ultra-deepwater environments. By combining its expertise in these harsh and challenging environments with AI-enabled capabilities, SLB aims to enhance the cost-effectiveness of drilling these wells.
The projects will be completed over the course of three years. SLB has already started work on these contracts. The contracts cover a wide range of drilling services for the efficient development of the wells. SLB will provide digital directional drilling services and hardware to optimize the drilling process.
Further, the company will use logging while drilling to obtain real-time data about subsurface conditions alongside surface logging to better understand the geological formations. The scope of the contract also includes wireline services, cementing, drilling and completion fluids, and completions.
SLB mentioned that it looks forward to continuing its long-standing relationship with Shell. By implementing its expertise in harsh, deepwater environments and its advanced technical knowledge, SLB will deliver optimized solutions for efficient development across these multi-region projects that align with client expectations. SLB noted that the projects will be monitored centrally via SLB’s Performance Live Centers.
Zacks Rank and Key Picks
SLB currently carries a Zacks Rank #5 (Sell), while SHEL holds a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are TechnipFMC plc FTI and Oceaneering International OII, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a high of $14.7 million in the third quarter of 2024, indicating an 11.1% increase from the previous year’s level. This growing backlog ensures strong revenue growth for FTI.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. Its proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.