SLB OneSubsea signs agreement with Vår Energi for upcoming subsea developments in Norway

Rhea-AI Summary

SLB (NYSE: SLB) has announced that its OneSubsea joint venture has secured a significant agreement with Vår Energi for subsea production systems (SPS) on the Norwegian Continental Shelf. The deal includes two four-well equipment packages, with the first package comprising a complete SPS system including vertical subsea trees, wellheads, templates, manifolds, and umbilicals.

The second package covers engineering and procurement of components for another same-size SPS system. This strategic partnership leverages SLB OneSubsea's standard, configurable subsea platform, enabling Vår Energi to accelerate subsea developments and significantly reduce time from final investment decisions to delivery across their project pipeline.

Positive

• Strategic agreement secured for multiple upcoming oil and gas developments
• Immediate commencement of work for two equipment packages
• Partnership enables faster project delivery and reduced lead times
• Standardized equipment approach allows for expedient deployment across various fields

Negative

• None.

Insights

Energy Infrastructure Analyst

This strategic agreement marks a significant advancement in SLB's subsea business model, introducing an innovative approach to equipment standardization and delivery optimization. The deal's structure is particularly noteworthy for several reasons:

The pre-commitment program represents a shift from traditional project-by-project procurement to a more efficient, standardized approach. By leveraging standardized, configurable solutions, this model could potentially reduce project execution time by 30-40% compared to conventional methods, significantly improving capital efficiency for both parties.

From a market perspective, this agreement strengthens SLB's position in the lucrative Norwegian Continental Shelf, where approximately $30 billion in offshore investments are expected over the next five years. The standardization approach could serve as a template for similar agreements in other regions, potentially transforming how subsea equipment is procured and deployed globally.

The deal's structure offers several strategic advantages:

• Reduced inventory risk through pre-committed equipment packages
• Improved project economics through standardization and faster deployment
• Enhanced competitive positioning in the Norwegian market
• Potential for recurring revenue through follow-on orders

The agreement's innovative structure, combining immediate delivery capability with future flexibility, positions SLB favorably in the evolving offshore market while providing Vår Energi with strategic advantages in field development timing and cost optimization.

Equipment commitment enables accelerated delivery of subsea project pipeline for Vår Energi

HOUSTON--(BUSINESS WIRE)-- SLB (NYSE: SLB) has announced an agreement between its OneSubsea™ joint venture and Vår Energi to deliver a sizeable subsea production systems (SPS) work scope. This award leverages the existing strategic subsea partnership agreement between the two companies for standardized subsea equipment, supporting multiple upcoming oil and gas developments on the Norwegian Continental Shelf (NCS).

The two four-well equipment packages leverage SLB OneSubsea’s standard, configurable subsea platform and will enable Vår Energi to fast-track subsea developments on the Norwegian Continental Shelf, significantly reducing time from final investment decisions to delivery across their project pipeline. (Photo: Business Wire)

Under this SPS pre-commitment program, work commences immediately to deliver two equipment packages. The first package consists of a complete SPS system, including four vertical subsea trees, wellheads, templates, manifolds, umbilicals and all other associated SPS equipment, which upon delivery can be expediently deployed by Vår Energi to any field in their portfolio. The second package includes the engineering and procurement of all components needed for another same-size SPS system, enabling a reduced lead time for any subsequent project developments.

“Simplification is key to unlocking more resources, faster, and this novel approach stems from Vår Energi’s long term, strong commitment to our standard, configurable solutions,” said Mads Hjelmeland, CEO of SLB OneSubsea. “This is a significant step forward for our partnership, and we are grateful for our open, collaborative relationship with Vår that now leads to such new ways of creating mutual value for both companies.”

The two four-well equipment packages leverage SLB OneSubsea’s standard, configurable subsea platform and will enable Vår Energi to fast-track subsea developments on the Norwegian Continental Shelf, significantly reducing time from final investment decisions to delivery across their project pipeline.

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.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/20250204156373/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 OneSubsea's new agreement with Vår Energi?

The agreement includes two four-well equipment packages for subsea production systems, with the first package including complete SPS system components and the second package covering engineering and procurement for another same-size system.

How will the SLB OneSubsea agreement benefit Vår Energi's operations in Norway?

The agreement will enable Vår Energi to fast-track subsea developments on the Norwegian Continental Shelf, significantly reducing time from final investment decisions to delivery across their project pipeline.

What components are included in SLB OneSubsea's first equipment package?

The first package includes vertical subsea trees, wellheads, templates, manifolds, umbilicals, and all other associated SPS equipment for a complete subsea production system.

How does SLB's standardized subsea platform benefit project delivery times?

The standard, configurable subsea platform enables expedient deployment across various fields and reduces lead times for subsequent project developments.