SLB OneSubsea awarded subsea boosting contract for bp’s Kaskida project in Gulf of Mexico

Rhea-AI Summary

SLB (NYSE: SLB) announced that its OneSubsea joint venture has been awarded a contract by bp for a subsea boosting system for the Kaskida project in the deepwater U.S. Gulf of Mexico. This marks the first engineering, procurement and construction (EPC) contract for a subsea boosting system between the two companies. The project includes a high-pressure subsea pump solution with integrated power and controls umbilical, and topside equipment. The system will provide artificial lift to maximize production through accelerated recovery of reserves with minimal energy consumption in bp's first Paleogene field development.

Positive

• First EPC contract between SLB OneSubsea and bp for subsea boosting systems
• Strategic expansion into subsea processing domain with major client bp
• Contract supports development of bp's first Paleogene field

Negative

• None.

Insights

Energy Industry Analyst

The contract award for subsea boosting technology in bp's Kaskida project represents a significant strategic expansion for SLB in the deepwater Gulf of Mexico market. This first-of-its-kind EPC contract between SLB OneSubsea and bp for subsea boosting systems signals growing market confidence in SLB's technological capabilities. The Paleogene field development is particularly noteworthy as these formations are typically challenging to exploit, requiring advanced recovery techniques.

The artificial lift technology's focus on maximizing production while minimizing energy consumption aligns with industry trends toward efficient resource recovery and reduced environmental impact. This contract likely represents substantial revenue potential, though specific values weren't disclosed. The deepwater market segment remains important for oilfield service companies and this win strengthens SLB's competitive position against rivals like Baker Hughes and Halliburton.

Oil & Gas Technology Specialist

The subsea boosting system for Kaskida represents cutting-edge technology in deepwater production optimization. Paleogene reservoirs are notoriously complex, typically lying beneath thick layers of salt at depths exceeding 20,000 feet. The implementation of artificial lift technology at such depths is technically challenging but important for maintaining profitable production rates.

The integrated power and controls umbilical system, combined with high-pressure pump capabilities, suggests a sophisticated solution designed for long-term reliability in extreme conditions. This technology's ability to accelerate reserve recovery while minimizing energy consumption could serve as a model for future deepwater developments, potentially leading to additional contract opportunities for SLB in similar projects.

Subsea boosting system to accelerate the full potential of deepwater project

HOUSTON--(BUSINESS WIRE)-- SLB (NYSE: SLB) today announced the award of a contract by bp to its OneSubsea joint venture for a subsea boosting system in the greenfield development of the Kaskida project in the deepwater U.S. Gulf of Mexico.

The OneSubsea subsea boosting system is a key technology within bp’s first Paleogene field development. It will supply the required artificial lift needed to maximize production through the accelerated recovery of reserves with minimal energy consumption. (Photo: Business Wire)

This award marks the latest milestone in the long-standing relationship between SLB OneSubsea and bp and is the first engineering, procurement and construction (EPC) contract for a subsea boosting system between the two companies. The project scope includes a supplier-led, high-pressure subsea pump solution complete with an integrated power and controls umbilical, as well as associated topside equipment.

“We’re delighted to expand our relationship with bp into the subsea processing domain, especially with such a critical delivery to bp’s first Paleogene field development,” said Mads Hjelmeland, CEO of SLB OneSubsea. “Our subsea boosting system will accelerate and maximize the immense potential for this development.”

The OneSubsea subsea boosting system is a key technology within bp’s first Paleogene field development. It will supply the required artificial lift needed to maximize production through the accelerated recovery of reserves with minimal energy consumption.

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/20241028536821/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 contract did SLB win for bp's Kaskida project?

SLB's OneSubsea joint venture won a contract to provide a subsea boosting system for bp's Kaskida project in the deepwater U.S. Gulf of Mexico, including a high-pressure subsea pump solution with integrated power and controls.

What is the significance of SLB's Kaskida project contract with bp?

It marks the first engineering, procurement and construction (EPC) contract for a subsea boosting system between SLB OneSubsea and bp, expanding their relationship into the subsea processing domain.

What technology will SLB provide for bp's Kaskida field?

SLB will provide a subsea boosting system that delivers artificial lift to maximize production through accelerated recovery of reserves with minimal energy consumption.