SLB's Strategic Position in Saudi Arabia's Unconventional Gas Expansion: A Catalyst for Energy Transition-Aligned Growth

has emerged as a pivotal player in Saudi Arabia's ambitious energy transition strategy, securing a five-year, multi-billion-dollar contract with Saudi Aramco to develop unconventional gas resources in the Kingdom. This partnership, announced in late 2025, underscores SLB's technological leadership in oilfield services and its alignment with global decarbonization goals. As Saudi Arabia seeks to diversify its energy mix under Vision 2030, SLB's role in unlocking unconventional gas-coupled with its sustainability initiatives-positions the company as a compelling long-term investment in the evolving energy landscape.

Strategic Alignment with Saudi Arabia's Energy Transition

Saudi Arabia's Vision 2030 emphasizes reducing the economy's reliance on oil by expanding domestic gas production and transitioning to lower-carbon energy systems. Unconventional gas, such as shale and tight gas, is central to this strategy, as it can replace liquid fuels for power generation and industrial use while emitting significantly less CO₂ than coal or oil. According to a report by SLB's investor relations team, the company has been awarded a five-year contract by Aramco to provide advanced stimulation, well intervention, frac automation, and digital solutions for unconventional gas fields. This collaboration is part of a broader $10–15 billion development program aimed at tripling Saudi Arabia's unconventional gas output by 2030.

The project's scale reflects the strategic importance of gas in the Kingdom's energy transition. As stated by Aramco in a press release, the initiative will enhance operational efficiency and reduce flaring, aligning with the country's net-zero aspirations. For SLB, the contract represents a long-term revenue stream in a market where demand for oilfield services is expected to grow by 8–10% annually through 2030.

Technological Innovation and Operational Excellence

SLB's competitive edge lies in its cutting-edge technologies tailored for unconventional gas extraction. The company's frac automation systems, for instance, optimize hydraulic fracturing by integrating real-time data analytics and machine learning, reducing water and chemical usage while improving well productivity. Digital solutions such as SLB's Digital Field platform further enhance reservoir management, enabling Aramco to monitor and adjust operations remotely according to a press release.

These innovations are critical for overcoming the technical challenges of Saudi Arabia's complex geology. As highlighted in a World Oil article, SLB's technologies are setting new benchmarks for unconventional gas development in the region, with projected production gains of 20–30% per well. This efficiency not only lowers costs but also reduces the environmental footprint of gas extraction, a key consideration for investors prioritizing ESG (Environmental, Social, and Governance) criteria.

Sustainability Metrics and Energy Transition Synergies

Beyond operational efficiency, SLB's involvement in Saudi Arabia's energy transition is bolstered by its sustainability commitments. The company has pledged to achieve net-zero emissions across all Scope 1, 2, and 3 categories by 2050, a target reinforced by its 2024 performance: SLB helped customers avoid over 950,000 metric tons of CO₂e emissions through carbon capture and methane reduction technologies according to SLB's sustainability report.

A notable example is the Jubail Carbon Capture and Storage (CCS) hub, a joint venture between SLB, Aramco, and Linde. Expected to capture and store 9 million metric tons of CO₂ annually in its first phase, the project exemplifies how SLB's expertise in industrial decarbonization complements its oilfield services. Such initiatives align with Saudi Arabia's National Carbon Management Plan, which aims to position the country as a global leader in carbon capture by 2030.

### Long-Term Growth Potential for Investors The convergence of SLB's technological capabilities, Saudi Arabia's energy transition ambitions, and global demand for cleaner energy creates a robust foundation for long-term growth. For investors, three key factors stand out: 1. Revenue Stability: The five-year contract with Aramco provides predictable cash flows, mitigating short-term volatility in the oilfield services sector. 2. Margin Expansion: Advanced technologies and digital solutions are expected to improve SLB's margins by reducing operational costs and enhancing project scalability. 3. ESG Alignment: As regulators and investors increasingly prioritize carbon reduction, SLB's sustainability initiatives-particularly in CCS and methane management-position it as a leader in the energy transition.

According to a Bloomberg analysis, SLB's stock has outperformed peers in 2025 due to its energy transition focus, with a price-to-earnings ratio of 14.5x compared to the industry average of 12.3x. Analysts project that the company's EBITDA margins could expand to 25–30% by 2030, driven by high-margin projects like the Jubail CCS hub and Saudi unconventional gas development.

Conclusion

Schlumberger's strategic partnership with Saudi Aramco in unconventional gas development is more than a commercial win-it is a testament to the company's ability to adapt to the energy transition while delivering value to stakeholders. By leveraging cutting-edge technologies and sustainability-driven solutions, SLB is not only supporting Saudi Arabia's Vision 2030 but also securing its position as a key player in the global shift toward lower-carbon energy. For investors seeking exposure to the energy transition, SLB's Saudi projects represent a compelling opportunity with long-term growth potential.