SLB Secures Three Contracts for Petrobras' Buzios Oil Field

Zacks Equity Research

April 22, 2024 at 8:41 a.m.·3 min read

SLB SLB, a leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry, has secured a significant breakthrough in its collaboration with Petrobras PBR.

The multinational oilfield services company has been awarded three contracts by Petrobras for completion hardware and services for up to 35 subsea wells in the development of PBR’s offshore Buzios Wave II oilfield.

The scope of the contract includes SLB’s full-bore electric interval control valves and electric subsurface safety valves. By transitioning to electric completions, Petrobras stands to benefit from enhanced control over a more sophisticated subsurface system, potentially reducing the need for extensive workovers during the productive lifespan of Buzios field wells.

The technology that is slated for deployment in the Buzios project has been developed primarily at SLB’s Taubaté Engineering Center in Brazil, in collaboration with CENPES, the Petrobras research center, and TotalEnergies to develop solutions tailored for the challenges posed by Brazilian pre-salt reservoirs.

Steve Gassen, president of Production Systems at SLB, hailed the partnership as a catalyst toward full production system electrification for Petrobras. He emphasized the potential of electrification and digitalization to enhance field recovery efficiency, particularly in complex pre-salt reservoirs.

Gassen noted that the collaboration represents a milestone in Petrobras' quest for digitally integrated offshore electric production systems, promising improved operational efficiency and the deployment of innovative technologies in Brazil's energy landscape.

While Petrobras remains committed to harnessing the potential of oil and gas to fund the transition toward greener energy sources, the company is equally focused on reducing its greenhouse gas emissions.

As part of its new strategic plan for the 2024-2028 period, PBR has allocated a significant portion of its investment toward projects aimed at achieving net zero emissions. These projects include biorefining, wind, solar, carbon capture, utilization, and storage (CCUS), and hydrogen initiatives.

SLB, in alignment with its commitment to sustainability, has also ventured into low-carbon opportunities. The company recently acquired a majority stake in Aker Carbon Capture, signaling its intent to expand its carbon capture capabilities.

Additionally, SLB has collaborated with Equinor to introduce fully autonomous drilling operations offshore Brazil and developed a compact methane instrument to enable accurate and continuous methane monitoring across oil and gas operations, contributing to emission reduction efforts.

Zacks Rank & Key Picks

Currently, SLB carries a Zack Rank #3 (Hold).

A couple of better-ranked stocks in the energy sector are Murphy USA Inc. MUSA and Global Partners GLP, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.40. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2024 and 2025.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

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Schlumberger Limited (SLB) : Free Stock Analysis Report

Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report

Murphy USA Inc. (MUSA) : Free Stock Analysis Report

Global Partners LP (GLP) : Free Stock Analysis Report

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SLB Secures Three Contracts for Petrobras' Buzios Oil Field

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