Omani oilfield contracts boost SLB’s Q1 performance

22 April 2024
Omani oilfield contracts boost SLB’s Q1 performance

A series of substantive contracts in Oman’s upstream hydrocarbon sector has buoyed the first quarter performance of oilfield services giant SLB (previously known as Schlumberger), the company said in a report of its Q1 2024 results.

SLB has a sizable presence in Oman’s oil and gas industry, having established operations here nearly 65 years ago at the outset of the country’s oil exploration quest in the 1950s.

Underscoring the company’s upbeat performance in Oman and the wider region, SLB said: “Revenue in the Middle East & Asia of $3.08 billion increased 29% year on year due to higher drilling, intervention, and evaluation activity in Saudi Arabia, Egypt, United Arab Emirates, Oman, Kuwait, and across Southeast Asia and Australia.”

A number of contracts helped boost SLB’s Q1 performance. BP, which operates gas-rich Block 61 in central Oman, awarded a contract extension for the provision of stimulation services, said SLB.

“The five-year extension reflects the strong partnership and mutual agreement to continue collaborating on efficiency and sustainability roadmaps. These initiatives aim to reduce upstream stimulation services sector emissions, demonstrating our shared commitment to environmental stewardship and sustainable practices,” SLB stated.

Likewise Medco Oman LLC awarded a contract to SLB for an automated drilling performance measurement and analysis service. The service will leverage digital technologies to assess current rig performance to identify and mitigate dynamic risks, such as the potential for stuck-pipe incidents. This initiative aims to enhance Medco's operational performance, reduce nonproductive time, and minimize lost time.

Additionally, MedcoEnergi has successfully started to deploy SLB’s EcoShield low-carbon geopolymer cement-free system, paving the way to decarbonize the company’s cementing operations in Oman.

“The first deployment in Oman resulted in complete elimination of conventional Class G cement and the use of sustainable locally sourced materials during the cementing of surface casing. This job achieved an estimated 87% reduction in CO2e emissions when compared to the conventional surface casing cementing job and represents a major milestone for MedcoEnergi and SLB in aligning with the industry’s path to net zero.”

In recent years, SLB has expanded its presence across Oman’s diversifying energy sector. In November 2022, the company was tapped by Oman’s Ministry and Energy and Minerals to chalk out a national strategy to develop the potential of the country’s geothermal resources. Also collaborating in this endeavour is Oman Investment Authority (OIA).

SLB had announced at the time that it had completed a comprehensive project to evaluate data from more than 7,000 oil, gas and water wells distributed across the length and breadth of Oman. The objective of that exercise, it noted, was to map out “sweet spots for geothermal prospects” in the country.

Early last year, SLB acquired a 10% stake in Omani drilling services company Abraj Energy, as one of three anchor investors that backed the Omani firm’s Initial Public Offering (IPO) and eventual listing on the Muscat Stock Exchange (MSX).