SLB and Equinor Drill Most Autonomous Well Section To-Date

Rhea-AI Summary

SLB (NYSE: SLB) announced a significant step toward fully autonomous drilling operations at Equinor's Brazilian Peregrino C platform. Over a five-well program, a 60% increase in rate of penetration was achieved, resulting in faster well delivery while reducing cost and carbon emissions. Multidisciplinary experts collaborated to design and implement interconnected autonomous workflows, enabling the system to seamlessly drill the section. The platform combines apps, AI, physics-based science, and free-flowing data to accelerate and improve exploration, development, drilling, production, and new energy operations.

Positive

• Significant progress towards fully autonomous drilling operations
• 60% increase in rate of penetration achieved
• Faster well delivery, reduced cost, and carbon emissions
• Multidisciplinary collaboration in designing and implementing autonomous workflows
• Delfi™ digital platform combines apps, AI, physics-based science, and free-flowing data for improved operations

Negative

• None.

Insights

Energy Sector Analyst

The integration of SLB's digital drilling technology in Equinor's operations represents a significant advancement in the oil and gas industry's move towards automation. The reported 60% increase in the rate of penetration (ROP) is a substantial improvement, which typically translates to more efficient drilling operations. Higher ROP can reduce the time and cost associated with drilling wells, which is crucial given the high operational costs in offshore drilling.

Furthermore, the reduction in carbon emissions aligns with the industry's increasing focus on sustainability and may provide Equinor with a competitive advantage, both in terms of cost efficiency and corporate responsibility. Investors in the energy sector should note the potential for SLB's technologies to become more widely adopted if these results can be replicated consistently across different drilling environments.

Sustainability Expert

The emphasis on reducing carbon emissions is particularly noteworthy. The oil and gas sector is under intense pressure to improve its environmental footprint. By incorporating autonomous drilling technologies that also contribute to lowering carbon emissions, Equinor is not only optimizing operational efficiency but also addressing a critical aspect of ESG (Environmental, Social and Governance) concerns that are increasingly influencing investor decisions.

This move may enhance Equinor's reputation and could potentially lead to a re-rating by investors who are looking to support companies with strong sustainability profiles. The long-term benefits for stakeholders include potential cost savings from reduced fuel consumption and a positive impact on the company's social license to operate.

Technology Analyst

The deployment of SLB's digital drilling solutions such as DrillPilot™, DrillOps™ and Neuro™ autonomous solutions on the Delfi™ digital platform showcases a leap in drilling technology. The integration of AI and cloud-based applications is a clear indicator of how the oil and gas industry is evolving technologically.

For stakeholders, the tech advancement implies a future where drilling operations can be optimized in real-time, leading to faster decision-making and potentially lower operational risks. It's also indicative of a future where technology providers like SLB could pivot to become service integrators, offering end-to-end solutions rather than standalone products. This could disrupt traditional business models within the sector and alter competitive dynamics.

SLB digital drilling solutions enabled Equinor to implement autonomous drilling at its Peregrino C platform in Brazil

HOUSTON--(BUSINESS WIRE)-- Regulatory News:

SLB (NYSE: SLB) today announced a significant step toward fully autonomous drilling operations at Equinor's Brazilian Peregrino C platform. SLB digital technologies for surface automation, autonomous on-bottom drilling, and directional drilling were combined to enable 99% of a 2.6-kilometer section to be drilled in autonomous control mode. Over a five-well program, a 60% increase in rate of penetration was achieved, resulting in faster well delivery while reducing cost and carbon emissions.

“This is an exciting milestone in the journey toward fully autonomous drilling operations,” said Jesus Lamas, President of Well Construction, SLB. “By leveraging AI and integrating advanced digital workflows, customers are realizing improved safety and performance through digital transformation, making drilling more consistent and efficient, and improving the carbon footprint of their operations.”

Multidisciplinary experts collaborated to design and implement interconnected autonomous workflows, enabling the system to seamlessly drill the section. On the rig floor, manual pipe handling and equipment sequencing tasks were automated with DrillPilot™ software. On-bottom drilling performance was maximized using AI-driven technology in the DrillOps™ automation solution. Neuro™ autonomous solutions determined the optimum trajectory and delivered the well plan, adjusting steering sequences and drilling parameters to reach the target as designed by the DrillPlan™ coherent well construction planning solution.

The DrillOps and DrillPlan solutions are cloud-based applications on the Delfi™ digital platform. The platform combines apps, AI, physics-based science and free-flowing data to accelerate and improve exploration, development, drilling, production, and new energy operations.

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.

Media
Moira Duff – Director of External Communications
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
Tel: +1 (713) 375-3535
Email: investor-relations@slb.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240129041342/en/

SLB

Source: SLB

FAQ

What is the significance of the announcement by SLB (NYSE: SLB)?

The announcement signifies a significant step towards fully autonomous drilling operations at Equinor's Brazilian Peregrino C platform, resulting in faster well delivery, reduced cost, and carbon emissions.

What was achieved over a five-well program mentioned in the PR?

A 60% increase in the rate of penetration was achieved over a five-well program, leading to faster well delivery.

What technologies were used to enable autonomous drilling at Equinor's Peregrino C platform?

SLB digital technologies for surface automation, autonomous on-bottom drilling, and directional drilling were combined to enable 99% of a 2.6-kilometer section to be drilled in autonomous control mode.

How did multidisciplinary experts contribute to the implementation of autonomous workflows?

Multidisciplinary experts collaborated to design and implement interconnected autonomous workflows, enabling the system to seamlessly drill the section.

What is the Delfi™ digital platform mentioned in the PR?

The Delfi™ digital platform combines apps, AI, physics-based science, and free-flowing data to accelerate and improve exploration, development, drilling, production, and new energy operations.