SLB Awarded Three Completion Contracts for Petrobras’ Buzios Field

Rhea-AI Summary

SLB has been awarded three completion contracts by Petrobras for the development of the Buzios Wave II oilfield, focusing on electric and digital-ready completions. The contracts aim to support Petrobras' move toward production system electrification, enhancing completion reliability and production availability. The technology developed at SLB's Taubaté Engineering Center in Brazil will be utilized in the Buzios field and potentially benefit other operators in Brazilian pre-salt fields.

Positive

• SLB awarded three completion contracts by Petrobras for Buzios Wave II oilfield development
• Focus on electric and digital-ready completions to support Petrobras' production system electrification
• Technology developed at SLB's Taubaté Engineering Center in Brazil to be utilized in Buzios field
• Contracts aim to improve completion reliability and production availability for Petrobras

Negative

• None.

Insights

Oil & Gas Industry Analyst

The agreement between SLB and Petrobras for completion services in the Buzios field represents a significant development within the oil and gas sector, particularly in the context of offshore resource development. The implementation of electric and digital-ready completions is a step towards the modernization of production systems, which aligns with broader industry trends towards increased efficiency and reliability. By enhancing production availability through more reliable completions, Petrobras can expect to see a reduction in downtime and potential cost savings over the long term.

For investors, the long-term nature of this contract for up to 35 subsea wells indicates a stable revenue stream for SLB from a major player in the industry, Petrobras. This could potentially strengthen SLB's market position in the offshore completions segment, providing a competitive edge in securing future contracts with other operators. Furthermore, the technological advancements highlighted may lead to intellectual property that can be leveraged across the sector.

Energy Technology Analyst

The move towards electrification in oilfield operations reflects an industry shift towards more sustainable and efficient extraction methods. Electrification can streamline operations, reduce carbon emissions and improve safety by minimizing the reliance on hydraulic systems which are prone to leaks and other environmental hazards. For stakeholders within the oil and gas industry, this also signals a potential shift in capital expenditure towards more electronic and digital infrastructure, with long-term implications for operational costs and environmental impact.

From a technological standpoint, the collaboration between SLB, Petrobras research center CENPES and TotalEnergies can drive innovation in the pre-salt fields. The bespoke nature of these technologies for the specific challenges of pre-salt reservoirs underscores the importance of tailored solutions in maximizing resource extraction. It is likely that the expertise developed here will become increasingly valuable as pre-salt fields become a more prominent part of global oil production portfolios.

Electric and digital-ready completions will support Petrobras’ move toward production system electrification, increasing completion reliability and improving production availability

HOUSTON--(BUSINESS WIRE)-- SLB (NYSE: SLB) has been awarded three contracts by Petrobras (NYSE: PBR) for completion hardware and services for up to 35 subsea wells in the development of Petrobras’ offshore Buzios Wave II oilfield. The scope of the contract includes SLB’s full bore electric interval control valves and electric subsurface safety valves. The award is a catalyst toward full production system electrification for Petrobras, improving production availability via more reliable completions.

Much of the technology to be deployed in Buzios and available for other operators of Brazilian pre-salt fields was developed at SLB’s Taubaté Engineering Center in Brazil for Brazilian pre-salt, in collaboration with CENPES, the Petrobras research center, and TotalEnergies. (Photo: Business Wire)

By converting to electric completions, Petrobras will gain the ability to reliably control a more sophisticated system in the subsurface. Full electrification of completions enables maximum production control across multiple reservoir drains, potentially requiring fewer wells and limiting heavy workovers during the productive life of the Buzios field wells.

“By leveraging the electrification and digitalization of completions from SLB, Petrobras will increase its field recovery efficiency in complex and challenging pre-salt reservoirs,” said Steve Gassen, President of Production Systems, SLB. “This contract award represents a critical milestone on Petrobras’ journey to digitally integrated offshore electric production systems. It will improve efficiency and deploy innovative technologies in Brazil.”

Much of the technology to be deployed in Buzios and available for other operators of Brazilian pre-salt fields was developed at SLB’s Taubaté Engineering Center in Brazil for Brazilian Pre-salt, in collaboration with CENPES, the Petrobras research center, and TotalEnergies.

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.

Slb.com/newsroom

View source version on businesswire.com: https://www.businesswire.com/news/home/20240412438623/en/

Media

Moira Duff

Director of External Communications

SLB

Tel: +1 (713) 375-3407

Email: 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

Email: investor-relations@slb.com

Source: SLB

FAQ

What contracts were awarded to SLB by Petrobras?

SLB was awarded three completion contracts by Petrobras for the development of the Buzios Wave II oilfield.

What is the focus of the contracts between SLB and Petrobras?

The contracts focus on electric and digital-ready completions to support Petrobras' move toward production system electrification.

Where was the technology developed that will be utilized in the Buzios field?

The technology was developed at SLB's Taubaté Engineering Center in Brazil.

Who collaborated in the development of the technology for the Buzios field?

The technology was developed in collaboration with CENPES, the Petrobras research center, and TotalEnergies.

What is the goal of Petrobras in converting to electric completions?

Petrobras aims to gain the ability to reliably control a more sophisticated system in the subsurface.

How will full electrification of completions benefit Petrobras?

Full electrification enables maximum production control across multiple reservoir drains, potentially requiring fewer wells and limiting heavy workovers.

Who stated that the contract award represents a critical milestone for Petrobras?

Steve Gassen, President of Production Systems at SLB, stated that the contract award represents a critical milestone for Petrobras.

Where was much of the technology developed for the Buzios field?

Much of the technology was developed at SLB's Taubaté Engineering Center in Brazil for Brazilian pre-salt fields.

What will the technology developed at SLB's Taubaté Engineering Center improve?

The technology will improve field recovery efficiency in complex and challenging pre-salt reservoirs.

What is the overall goal of Petrobras in digitally integrating offshore electric production systems?

The goal is to improve efficiency and deploy innovative technologies in Brazil.

What will the contracts between SLB and Petrobras potentially benefit?

The contracts may benefit other operators of Brazilian pre-salt fields.

What is the significance of the contract award for Petrobras?

The contract award represents a critical milestone on Petrobras' journey to digitally integrated offshore electric production systems.