SLB awarded major drilling contract by Woodside Energy for ultra-deepwater Trion development, offshore Mexico

Rhea-AI Summary

SLB (NYSE: SLB) has secured a major drilling contract from Woodside Energy (NYSE: WDS) for the ultra-deepwater Trion development project in Mexico. The contract encompasses the delivery of 18 ultra-deepwater wells over three years, utilizing AI-enabled drilling capabilities.

The comprehensive scope includes digital directional drilling services, logging while drilling (LWD), surface logging, cementing, drilling and completions fluids, completions, and wireline services. The project will operate in challenging water depths up to 2,500 meters.

Services will commence in early 2026, managed through SLB's Performance Live™ digital service delivery centers. This follows a previous major contract awarded to SLB OneSubsea™ joint venture in 2023 for subsea equipment. The Trion field, being developed by Woodside in partnership with Pemex, targets first production in 2028.

Positive

• Secured major ultra-deepwater drilling contract for 18 wells
• Contract leverages high-value AI and digital technology services
• Strategic presence in Mexico with established local supply chains
• Second major contract win for Trion development project

Negative

• Project execution not starting until 2026
• Complex technical challenges with ultra-deepwater depths up to 2,500 meters

Insights

Energy Industry Analyst

This major drilling contract represents a significant win for SLB in the premium ultra-deepwater market segment. The 18-well scope over three years provides valuable backlog stability during a period when energy companies are becoming increasingly selective with capital deployment.

The Trion development is a cornerstone project in Mexico's offshore strategy, operating at challenging water depths up to 2,500 meters. SLB's selection for both this drilling package and the previous OneSubsea award demonstrates the company's competitive advantage in complex deepwater environments where technical differentiation matters more than price.

SLB's integrated services approach is particularly noteworthy as it allows the company to capture more value across the well delivery process. The comprehensive scope spanning directional drilling, LWD, surface logging, cementing, fluids, completions, and wireline services suggests a higher contract value than single-service awards.

While the 2026 start date means no immediate revenue impact, this contract strengthens SLB's medium-term outlook in a strategic growth region. The company's emphasis on local talent development and supply chains in Mexico positions it favorably for additional work as the country expands its deepwater activity.

Technology Investment Analyst

This contract validates SLB's strategic investment in AI-enabled drilling capabilities and digital technologies. In ultra-deepwater environments where operating costs can exceed $1 million per day, the efficiency improvements from these technologies translate directly to significant value creation for operators like Woodside.

The deployment of Performance Live™ digital service centers represents SLB's shift toward remote operations models that reduce personnel on rigs while improving decision quality. This approach typically delivers 15-30% efficiency gains while lowering HSE risks in challenging deepwater environments.

The technical complexity of drilling at 2,500 meters water depth creates substantial barriers to entry, allowing SLB to command premium pricing for its differentiated technology stack. This contract reinforces SLB's transition from a traditional oilfield services provider to a technology-led energy solutions company.

This second major award for the Trion project (following the OneSubsea contract) demonstrates how SLB's digital ecosystem creates competitive advantages across multiple service lines. The company's ability to integrate subsea equipment with drilling operations through unified digital platforms provides operational synergies that competitors struggle to match, potentially leading to additional contract wins as the project progresses.

• Includes 18 ultra-deepwater wells to be delivered over a three-year timeframe
• AI-enabled drilling capabilities to improve operational efficiency and well quality

HOUSTON--(BUSINESS WIRE)-- Global energy technology company SLB (NYSE: SLB) has been awarded a major drilling contract by Australian independent Woodside Energy (NYSE: WDS) for its ultra-deepwater Trion development project, offshore Mexico.

SLB will oversee the delivery of 18 ultra-deepwater wells using an integrated services approach and AI-enabled drilling capabilities to improve operational efficiency and well quality. The full scope of the contract includes digital directional drilling services and hardware, logging while drilling (LWD), surface logging, cementing, drilling and completions fluids, completions, and wireline services.

“With water depths of up to 2,500 meters, the Trion development presents challenging technical conditions for drilling and well construction,” said Wallace Pescarini, president, Offshore Atlantic, SLB. “SLB has extensive expertise in ultra-deepwater drilling projects globally and advanced technologies, including AI and digitally enabled hardware, to bring these wells online safely, efficiently and reliably. We will also leverage the strategic investments we’ve made in local talent and supply chains in Mexico, which will help support the on-time delivery of this project.”

Services will begin in early 2026 and be managed through SLB’s Performance Live™ digital service delivery centers. This contract follows another major contract from Woodside for the Trion development to the SLB OneSubsea™ joint venture in 2023, which includes subsea horizontal trees, controls and topside equipment. Manufacturing is currently on track.

Woodside is developing the field in partnership with Pemex. First production is targeted in 2028.

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/20250331929055/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 scope of SLB's new drilling contract with Woodside Energy for the Trion project?

SLB will deliver 18 ultra-deepwater wells using integrated services, including digital directional drilling, logging, cementing, completions, and wireline services.

When will SLB begin services for the Woodside Trion development project?

Services will commence in early 2026, with first production targeted for 2028.

What are the technical challenges in the Trion development project for SLB?

The project involves ultra-deepwater drilling at depths up to 2,500 meters, requiring advanced AI and digital technologies for safe and efficient well construction.

How many contracts has SLB secured for the Trion development project?

SLB has secured two major contracts: the current drilling contract and a previous contract in 2023 through its OneSubsea joint venture for subsea equipment.