SLB Awarded Integrated Services Contract for All Petrobras’ Offshore Fields in Brazil

Rhea-AI Summary

SLB has secured a major contract with Petrobras following a competitive tender for integrated services across all Petrobras' offshore fields in Brazil. The approximately $800 million contract involves overseeing the construction of more than 100 deepwater wells using up to nine ultra-deepwater rigs. The three-year contract begins in April 2025 and covers operations in the Campos, Santos, and Espírito Santo Basins, with potential expansion to the Equatorial Margin.

The project will utilize advanced technologies including SLB's Ora™ intelligent wireline formation testing platform and SpectraSphere™ fluid mapping-while-drilling service, with most technology and equipment being sourced locally. These technologies aim to enhance operational efficiency, minimize risks, and reduce emissions while providing real-time reservoir characterization and improved drilling decisions.

Positive

• Secured $800 million contract for integrated offshore services
• Large-scale project covering 100+ deepwater wells across multiple basins
• Three-year contract duration providing steady revenue stream
• Local sourcing of technology and equipment strengthening market position in Brazil
• Implementation of advanced technologies for improved operational efficiency

Negative

• Contract execution doesn't begin until April 2025
• Equatorial Margin operations dependent on pending exploration license approval

Insights

Financial Analyst

This $800 million integrated services contract represents a significant win for SLB in Brazil's offshore market. The deal's scope is extensive, covering over 100 deepwater wells across multiple basins, which should provide steady revenue streams starting April 2025. The contract strengthens SLB's market position in Brazil's lucrative offshore sector and demonstrates the company's competitive edge in advanced drilling technologies. The local sourcing commitment also helps reduce operational costs while meeting Brazil's local content requirements.

The timing aligns with the broader industry trend of increased offshore drilling activities and higher spending by major oil companies. For SLB, this contract not only provides revenue visibility but also positions them strategically in Brazil's growing deepwater market, particularly as Petrobras expands its exploration activities in the Equatorial Margin.

Tech Expert

The deployment of advanced technologies like the Ora™ platform and SpectraSphere™ service showcases SLB's technological leadership in offshore drilling. These solutions offer significant operational advantages - the Ora platform's real-time reservoir characterization capabilities reduce drilling risks while improving productivity, while SpectraSphere's fluid mapping-while-drilling technology enables better decision-making during well construction. The emphasis on emissions reduction through these technologies also aligns with the industry's growing focus on environmental efficiency.

Following a competitive tender process, the award covers more than 100 wells across nine ultra-deepwater rigs including exploratory and revitalization wells in the Campos Basin, with potential operations in the Equatorial Margin

HOUSTON--(BUSINESS WIRE)-- Global energy technology company SLB (NYSE: SLB) today announced that it has been awarded, after a competitive tender, a new contract by Petrobras (NYSE: PBR) for integrated services across all offshore fields operated by Petrobras in Brazil. SLB will oversee the construction of more than 100 deepwater wells, utilizing advanced drilling, cementing and drilling fluids technologies on up to nine ultra-deepwater rigs.

Technologies to be deployed under the contract include transition technologies such as SLB’s Ora™ intelligent wireline formation testing platform and SpectraSphere™ fluid mapping-while-drilling service. (Photo: Business Wire)

The services will primarily be provided in the Campos, Santos, and Espírito Santo Basins, along with other Petrobras-operated fields, including exploratory wells. Operations in the Equatorial Margin are also planned, pending exploration license approval within the three-year contract period commencing April 2025. Much of the technology and equipment to be deployed will be sourced locally.

“SLB has maintained a strong relationship with Petrobras as a technology partner for many decades,” said Wallace Pescarini, president of the Offshore Atlantic basin at SLB. “This contract builds on our existing work with Petrobras across its offshore basins and introduces new technologies that enhance both operational and environmental efficiency. Moreover, it aligns with our robust local content journey in Brazil and with our well distributed operational footprint across the country.”

Wllisses Menezes Afonso, executive manager of Wells at Petrobras said, "This investment of approximately $800 million will allow us to intensify our activities in several basins, revitalizing already productive fields and exploring new areas, with new technologies, with a focus on making our operations even safer and more efficient."

Technologies to be deployed under the contract include transition technologies such as SLB’s Ora™ intelligent wireline formation testing platform and SpectraSphere™ fluid mapping-while-drilling service. The Ora platform provides real-time reservoir characterization, minimizing risks and maximizing productivity while significantly reducing emissions. SpectraSphere provides accurate pressure measurements, performs downhole fluid analysis, and acquires high-quality samples while drilling, resulting in better steering decisions and optimized productivity.

About SLB

SLB (NYSE: SLB) is a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

Cautionary Statement Regarding Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “can,” “estimate,” “intend,” “anticipate,” “will,” “potential,” “projected" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as forecasts or expectations regarding the deployment of, or anticipated benefits of, SLB’s new technologies and partnerships; statements about goals, plans and projections with respect to sustainability and environmental matters; forecasts or expectations regarding energy transition and global climate change; and improvements in operating procedures and technology. These statements are subject to risks and uncertainties, including, but not limited to, the inability to achieve net-negative carbon emissions goals; the inability to recognize intended benefits of SLB’s strategies, initiatives or partnerships; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the timing or receipt of regulatory approvals and permits; and other risks and uncertainties detailed in SLB’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241211656672/en/

Media

Josh Byerly – SVP of Communications

Moira Duff – Director of External Communications

SLB

Tel: +1 (713) 375-3407

media@slb.com

Investors

James R. McDonald – SVP of Investor Relations & Industry Affairs

Joy V. Domingo – Director of Investor Relations

SLB

Tel: +1 (713) 375-3535

investor-relations@slb.com

Source: SLB

FAQ

What is the value of SLB's new Petrobras contract in Brazil?

The contract is valued at approximately $800 million.

When does SLB's new Petrobras offshore contract start?

The contract begins in April 2025 and runs for three years.

How many wells will SLB construct under the new Petrobras contract?

SLB will oversee the construction of more than 100 deepwater wells.

Which Brazilian basins are covered in SLB's new Petrobras contract?

The contract covers the Campos, Santos, and Espírito Santo Basins, with potential operations in the Equatorial Margin.

What technologies will SLB deploy in the Petrobras offshore project?

SLB will deploy the Ora™ intelligent wireline formation testing platform and SpectraSphere™ fluid mapping-while-drilling service.