SLB OneSubsea Boosts Petrobras' Búzios Field: A Win for Energy Innovation

In the dynamic world of energy, Schlumberger Limited's (SLB) OneSubsea division has secured a significant contract with Petrobras for subsea boosting in the Búzios field, offshore Brazil. This strategic win not only bolsters SLB's revenue and earnings but also underscores the company's commitment to local content and technological innovation. Let's delve into the implications of this contract and its impact on SLB's future.

Revenue and Earnings Boost

The contract, valued at approximately $800 million, is expected to contribute significantly to SLB's overall revenue growth in the next quarter and fiscal year. As of December 9, 2024, SLB's total revenue was $9.16 billion, with operating revenue of $9.16 billion. The contract represents around 8.7% of SLB's current quarterly revenue, poised to drive growth in the next quarter and fiscal year.

Moreover, this contract is anticipated to have a positive impact on SLB's earnings per share (EPS) projections for the next quarter and fiscal year. With a forward P/E ratio of 11.43, indicating a potential upside of 40.06% based on analysts' average price targets, the contract's revenue and earnings contribution could further enhance SLB's EPS growth.



Local Content Strategy in Brazil

The contract awarded to SLB OneSubsea by Petrobras for subsea boosting in the Búzios field significantly contributes to SLB's local content strategy in Brazil. The project involves the deployment of advanced technologies like the Subsea Gas Compressor (SGC) and SpectraSphere™ fluid mapping-while-drilling service, designed to handle harsh deepwater environments, ensuring reliable and efficient gas production. This contract aligns with SLB's commitment to investing in digital products and services that enhance efficiency and productivity, particularly valuable in long-cycle gas and deepwater projects. By expanding its presence in Brazil, SLB aims to support the growing demand for natural gas, which is expected to play a significant role in the global energy transition due to its lower carbon footprint compared to other fossil fuels.

Technological Innovation

SLB OneSubsea has been awarded a subsea boosting contract by Petrobras for the Búzios field, offshore Brazil. The project will utilize advanced technologies such as the Ora™ intelligent wireline formation testing platform and SpectraSphere™ fluid mapping-while-drilling service. The Ora platform provides real-time reservoir characterization, minimizing risks and maximizing productivity while significantly reducing emissions. SpectraSphere provides accurate pressure measurements, performs downhole fluid analysis, and acquires high-quality samples while drilling, resulting in better steering decisions and optimized productivity. These technologies will enhance operational efficiency and environmental sustainability by improving field development economics and reducing the carbon footprint.

In conclusion, the SLB OneSubsea subsea boosting contract with Petrobras for the Búzios field is a strategic win for both parties. It bolsters SLB's revenue and earnings, strengthens its local content strategy in Brazil, and showcases the company's commitment to technological innovation. As the energy sector continues to evolve, SLB's focus on cutting-edge solutions and sustainable practices positions it well for future growth and success.