SLB's Stock Rises 1.95% on Major Subsea Contract with PTTEP as 870M Volume Ranks 117th in Market Activity

Market Snapshot

On March 10, 2026, SLB (NYSE: SLB) closed with a 1.95% gain, outperforming broader market benchmarks. The stock saw a trading volume of $0.87 billion, ranking 117th in total activity across the market. The positive momentum followed the announcement of a significant contract win by SLB’s OneSubsea joint venture, which bolstered investor confidence in the company’s near-term revenue visibility and operational strength in the subsea energy sector.

Key Drivers

SLB’s OneSubsea joint venture secured a major engineering, procurement, and construction (EPC) contract with PTTEP Sabah Oil Limited, a subsidiary of Thailand’s PTT Exploration and Production Public Company Limited (PTTEP). The deal, part of PTTEP’s deepwater expansion in Malaysia, marks the third major subsea production system (SPS) award from PTTEP in the past 12 months. This contract expands SLB OneSubsea’s role in delivering integrated subsea infrastructure for the Kikeh 3B Phase 2 development, including subsea trees, manifolds, and control systems. The project, set to span 2026 and 2027, leverages SLB OneSubsea’s manufacturing and service facilities in Malaysia, reinforcing the company’s local supply chain capabilities and expertise in deepwater operations.

The repeated business from PTTEP underscores SLB OneSubsea’s entrenched position in Malaysia’s deepwater energy landscape. Mads Hjelmeland, CEO of SLB OneSubsea, emphasized the joint venture’s two-decade-long collaboration with PTTEP, positioning it to deliver “safe, efficient, and integrated execution” across recent contracts. This continuity suggests strong client trust and operational reliability, which are critical in capital-intensive subsea projects where delays or cost overruns can significantly impact profitability. The Kikeh field, Malaysia’s first deepwater oil and gas development, has been a long-term partnership, with SLB OneSubsea’s equipment deployed since 2007. The current project builds on this legacy, operating at depths of 1,300–1,400 meters, a technical challenge that highlights SLB’s advanced engineering capabilities.

The contract also aligns with SLB’s broader strategic focus on decarbonization and energy transition. By expanding local manufacturing of high-value subsea equipment in Malaysia, SLB OneSubsea is strengthening regional supply chains and reducing carbon footprints associated with long-distance logistics. This aligns with global trends toward localized production and sustainable operations, which are increasingly prioritized by investors and regulators. Additionally, the project’s emphasis on integrated digital solutions—such as control systems—positions SLB to capitalize on the growing demand for technology-driven oil and gas production, a key growth area in the energy transition.

While the contract is not expected to immediately boost 2026 earnings (execution spans 2026–2027), the long-term revenue visibility likely contributed to the stock’s 1.95% rise. The deal also signals robust demand for subsea infrastructure in Southeast Asia, a region where deepwater exploration remains underdeveloped compared to other global basins. For SLB, this contract reinforces its leadership in subsea technology and validates its joint venture model, which combines expertise from SLB, Aker Solutions, and Subsea7. The partnership structure mitigates financial risk and ensures access to specialized resources, enhancing the company’s competitive edge in a capital-intensive industry.

The news comes amid broader industry tailwinds, including rising global energy demand and renewed interest in deepwater projects as shallow reserves deplete. SLB’s ability to secure recurring contracts from established clients like PTTEP demonstrates its capacity to navigate a cyclical industry and maintain market share during periods of volatility. However, the company’s forward-looking statements—such as projected execution timelines and environmental benefits—carry inherent risks, including regulatory delays, supply chain disruptions, and fluctuating commodity prices. Nonetheless, the immediate market reaction reflects optimism about SLB’s operational execution and its alignment with long-term energy transition goals.