SLB Limited (SLB) announced Tuesday it has secured a five-year contract with Saudi Arabia's state oil giant Aramco, positioning itself as a key player in what's shaping up to be one of the world's largest unconventional gas developments. The deal is part of a broader multi-billion-dollar program that's central to the Kingdom's ambitious energy transformation plans.
What SLB Is Bringing to the Table
The contract covers a comprehensive suite of services designed to unlock Saudi Arabia's unconventional gas resources. We're talking advanced stimulation services, well intervention, frac automation, and digital solutions. These aren't just nice-to-have technologies—they're essential tools for extracting gas from challenging geological formations that traditional methods struggle with.
The scope of the work ties directly into Saudi Arabia's Vision 2030 initiative, which aims to diversify the Kingdom's economy beyond conventional oil production and support global energy transition objectives. Steve Gassen, executive vice president of Geographies at SLB, emphasized this connection: "This agreement is an important step forward in Aramco's efforts to diversify its energy portfolio in line with Vision 2030 and energy transition goals."
Building Digital Muscle
The Aramco win comes on the heels of another strategic move by SLB. Earlier this month, the company struck a collaboration deal with Shell PLC (SHEL) to develop digital and AI solutions aimed at improving performance and efficiency across upstream operations. The goal is to create benefits not just for the two companies, but for the broader oil and gas industry.
The Shell partnership focuses on building agentic AI solutions that enhance the capabilities of technical experts and decision-makers. At the core is an open, secure digital infrastructure that integrates data and workflows across subsurface analysis, well construction, and production. The platform leverages SLB's Lumi data and AI technology to tie everything together.
SLB shares traded down 0.94% at $37.97 on Tuesday following the announcement.