SLB OneSubsea Awarded Contract by Equinor for Groundbreaking All-Electric Subsea Project

Rhea-AI Summary

SLB has secured a contract from Equinor for the front-end engineering design of a 12-well, all-electric Subsea Production Systems (SPS) project at the Fram Sør field, offshore Norway. This project aims to fast-track the global adoption of electric subsea technology, enhancing operator control, efficiency, and reducing emissions. It is the first project from a joint industry initiative started in 2018 to develop standardized subsea electrification solutions. The project will utilize SLB OneSubsea’s standardized subsea tree design with upgraded electrified power and control systems, eliminating high-pressure hydraulics, thus enabling deeper and more efficient operations.

Positive

• SLB awarded a significant contract by Equinor for a 12-well electric Subsea Production Systems project.
• The project is expected to advance global adoption of electric subsea technology.
• The initiative is a result of a joint industry project commenced in 2018.
• The standardized design approach promotes efficient and economic scaling.
• Elimination of high-pressure hydraulics enhances deep-sea operational efficiency.

Negative

• Conditional future contracts are dependent on a final investment decision.

Insights

Energy Sector Analyst

Technology adoption in the energy sector is a key indicator of future performance. The contract awarded to SLB by Equinor for a 12-well all-electric subsea project signals a significant shift towards electrification in offshore oil and gas operations. This initiative aims to enhance operator control and efficiency while reducing emissions. From a business perspective, standardized industry solutions can lower both capital expenditure (capex) and operational expenditure (opex), making operations more economically viable.

Going electric in subsea production systems is not just a technological upgrade but also aligns with global energy transition goals. Such projects can attract environmentally-conscious investors and potentially qualify for various sustainability grants and funding.

However, the project's success heavily depends on the final investment decision and its implementation timeline. Any delays or technical challenges could affect the overall potential benefits. Investors should keep an eye on these milestones for a clearer picture of SLB's future trajectory.

Market Research Analyst

Equinor’s choice of SLB for this project highlights the latter's leadership in subsea technology. This collaboration is likely to fast-track the global adoption of all-electric subsea systems, setting new industry standards. For retail investors, this can signify a growth opportunity for SLB, as the company could become the go-to provider for similar projects worldwide.

The ongoing development of standardized solutions can lead to economies of scale, making it easier for other operators to adopt these technologies. This could open up new revenue streams and market opportunities for SLB, impacting its long-term financial performance positively.

Investors should consider the broader market impact. If this project succeeds, it could spur further investments in similar technologies across the sector, benefiting SLB’s market position and potentially boosting stock value.

Environmental Scientist

The environmental implications of this project are highly significant. By transitioning from hydraulic to electric systems, SLB and Equinor aim to reduce offshore emissions. This aligns well with global sustainability targets and could make subsea operations considerably more environment-friendly.

Moreover, the adoption of electric systems can lead to improved monitoring and control, reducing the risk of environmental accidents and improving overall operational safety. This aspect is particularly appealing to investors focused on Environmental, Social and Governance (ESG) criteria.

However, while the environmental benefits are promising, investors should be cautious about the project's actual impact, which will only be clear once it's operational. Continuous updates and progress reports will be important for evaluating its effectiveness in emission reduction.

Twelve-well campaign will enable accelerated global adoption of electric subsea technology and reduce emissions from subsea operations

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

The Fram Sør project is the first application to be implemented resulting from a joint industry project to accelerate the development of breakthrough electrification technology through a standardized industry solution. (Photo: Business Wire)

SLB (NYSE: SLB) has announced a contract award from Equinor for the front-end engineering design (FEED) of a 12-well, all-electric Subsea Production Systems (SPS) project in the Fram Sør field, offshore Norway. The project will fast-track wide-scale global adoption of electric subsea technology, setting new standards for increased operator control, subsea operational efficiency and reduced offshore emissions. As part of the agreement, future engineering, procurement and construction will be directly awarded to SLB OneSubsea conditional on a final investment decision.

This project is the first application to be implemented resulting from a joint industry project, which commenced in 2018 and involved close collaboration across major industry players to accelerate the development of breakthrough electrification technology through a standardized industry solution. Basing the design on an established standard enables efficient and economic scaling of subsea electrification for operators worldwide, bringing associated capex and opex benefits.

“Electrification is vital to the future of subsea operations in the energy transition,” said Mads Hjelmeland, chief executive officer of SLB OneSubsea. “This technology has effectively created the IoT for subsea trees, providing operators with improved control through live performance and condition monitoring. We are grateful for the collaboration with Equinor and the other joint-industry-partners over the past six years that has made this milestone possible.”

The Fram Sør solution will use SLB OneSubsea’s standard subsea tree design, upgraded with a fully electrified power, control and actuation system, while the elimination of high-pressure hydraulic systems will enable operators to go further and deeper, improving production and making even marginal fields more viable.

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 SLB OneSubsea

SLB OneSubsea is driving the new subsea era that leverages digital and technology innovation to optimize our customers’ oil and gas production, decarbonize subsea operations, and unlock the large potential of subsea solutions to accelerate the energy transition. SLB OneSubsea is a joint venture backed by SLB, Aker Solutions, and Subsea7 headquartered in Oslo and Houston, with 10,000 employees across the world. Find out more at onesubsea.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/20240626420141/en/

Media

Moira Duff – Director of External Communications

SLB

Tel: +1 (713) 375-3407

media@slb.com



Investors

James R. McDonald – Vice President of Investor Relations

Joy V. Domingo – Director of Investor Relations

SLB

Tel: +1 (713) 375-3535

investor-relations@slb.com

Source: SLB

FAQ

What recent contract did SLB receive from Equinor?

SLB received a contract from Equinor for the front-end engineering design of a 12-well, all-electric Subsea Production Systems project at the Fram Sør field.

What is the significance of SLB's new project with Equinor?

The project aims to accelerate the global adoption of electric subsea technology, improving operational efficiency and reducing emissions.

When did the joint industry project that resulted in SLB's new contract begin?

The joint industry project commenced in 2018.

What is the key technological advancement in SLB's new subsea project?

The project includes the use of a fully electrified power, control, and actuation system, eliminating the need for high-pressure hydraulic systems.

What are the potential benefits of the standardized design used in SLB's project?

The standardized design allows for efficient and economic scaling of subsea electrification, bringing capex and opex benefits.