SLB and Nabors Announce Collaboration to Scale Adoption of Drilling Automation Solutions

Rhea-AI Summary

Schlumberger (SLB) and Nabors Industries (NBR) have announced a collaboration to scale the adoption of automated drilling solutions for oil and gas operators and drilling contractors. The agreement will enable customers to seamlessly integrate the companies’ drilling automation applications and rig operating systems to deliver improved well construction performance and efficiency.

Insights

Market Research Analyst

The strategic alliance between SLB and Nabors Industries marks a significant milestone in the oil and gas sector, particularly in the domain of automated drilling solutions. It reflects a broader industry trend towards digital transformation and automation, aimed at enhancing operational efficiency and reducing costs. This partnership is poised to streamline the integration of drilling automation applications and rig operating systems, which is anticipated to lead to improved well construction performance.

From a market perspective, this collaboration could potentially reshape competitive dynamics by setting new industry standards for drilling efficiency and safety. The ability to seamlessly integrate different technologies and equipment across platforms may encourage further innovation and investment in the sector, potentially leading to increased market opportunities for both companies. Moreover, the emphasis on interoperability suggests a customer-centric approach, likely to enhance client retention and attract new business.

Investors and stakeholders should monitor the adoption rate of these integrated solutions, as it will be an indicator of the collaboration's success and its impact on the companies' financial performance. Additionally, the ability to scale automated drilling solutions could lead to cost savings and, by extension, margin improvements for operators and drilling contractors, which would be reflected in their financial outcomes.

Energy Sector Analyst

SLB and Nabors' collaboration underscores the energy sector's commitment to technological innovation, particularly in drilling automation—a critical component in optimizing resource extraction. The integration of SLB's PRECISE™ and Nabors' SmartROS® rig operating systems is expected to mitigate system integration bottlenecks, a challenge that has historically impeded the widespread adoption of drilling automation technologies.

The partnership could have substantial implications for the industry's operational excellence. By providing access to Neuro™ autonomous directional drilling, the companies are enabling more precise and efficient drilling operations, which can lead to reduced environmental impact and enhanced safety. These improvements align with the industry's increasing focus on sustainability and responsible resource management.

For energy companies, adopting these integrated solutions may result in lower operational risks and downtime, thus potentially improving the bottom line. The long-term implications could include shifts in industry benchmarks for drilling operations, with a greater emphasis on automation and data-driven decision-making.

Financial Analyst

The announcement of the collaboration between SLB and Nabors Industries is likely to be scrutinized by financial analysts for its impact on both companies' revenue streams and market share. By leveraging each other's strengths in drilling automation, the companies aim to create a more compelling value proposition for exploration and production (E&P) customers and drilling contractors.

Financially, the synergy between their respective technologies may lead to cost synergies and enhanced revenue generation capabilities. Investors should consider the potential for increased market penetration and the capture of a larger share of the drilling technology market, which could translate into higher revenues and profitability for both SLB and Nabors.

Furthermore, the strategic nature of this partnership could serve as a catalyst for future joint ventures or mergers and acquisitions within the sector, as companies strive to remain competitive in a rapidly evolving technological landscape. It is crucial to evaluate how these strategic moves align with the companies' long-term growth strategies and the possible effects on their stock performance.

Leaders in automated drilling solutions have integrated their platforms, providing greater flexibility and interoperability between ecosystems

HOUSTON--(BUSINESS WIRE)-- SLB (NYSE: SLB) and Nabors Industries (NYSE: NBR, “Nabors”) today announced a collaboration to scale the adoption of automated drilling solutions for oil and gas operators and drilling contractors. The agreement will enable customers to seamlessly integrate the companies’ drilling automation applications and rig operating systems to deliver improved well construction performance and efficiency.

The new integration provides customers with access to a broader suite of drilling automation technologies and greater flexibility to utilize their existing rig control systems and equipment on either SLB’s PRECISE™ or Nabors’ SmartROS® rig operating system.

“System integration bottlenecks are one of the main roadblocks to global adoption of drilling automation,” said Jesus Lamas, president, Well Construction, SLB. “Our collaboration with Nabors will provide E&P customers and drilling contractors across the globe with greater access to high-performance drilling capabilities, including Neuro™ autonomous directional drilling.”

“This is a great example of how industry collaboration can break down barriers to scale adoption of automated drilling solutions industrywide,” said Subodh Saxena, senior vice president, Technology and Services, Nabors. “We are excited to team up with SLB to make certain solutions available to each other and to continue expanding the installed base of Nabors’ digital solutions beyond Nabors rigs.”

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.

About Nabors Industries

Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With operations in more than 15 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.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/20240110073742/en/

SLB Media

Moira Duff – Director of External Communications

Tel: +1 (713) 375-3407

Email: media@slb.com

Nabors Media

Brian Brooks

Tel: +1 (281) 775-4370

Email: brian.brooks@nabors.com

SLB 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

Nabors Investors

William C. Conroy

Tel: +1 (281) 775-2423

Email: william.conroy@nabors.com

Kara K. Peak

Tel: +1 (281) 775-4954

Email: kara.peak@nabors.com

Source: SLB

FAQ

What companies have announced a collaboration to scale the adoption of automated drilling solutions?

Schlumberger (SLB) and Nabors Industries (NBR)

What will the collaboration enable customers to do?

Seamlessly integrate the companies’ drilling automation applications and rig operating systems to deliver improved well construction performance and efficiency.

What are the benefits of the new integration for customers?

Access to a broader suite of drilling automation technologies and greater flexibility to utilize their existing rig control systems and equipment on either SLB’s PRECISE™ or Nabors’ SmartROS® rig operating system.

Who is the president of Well Construction at SLB?

Jesus Lamas

Who is the senior vice president of Technology and Services at Nabors?

Subodh Saxena