SLB N.V. SLB has secured a contract from OQ Exploration & Production to deliver the Bisat-B Expansion Production Facility in Oman, reinforcing its position in one of the key Middle East energy markets. The award expands SLB’s project backlog and underscores steady demand for its integrated engineering, construction and production-related services.
Bisat Project Enhances Revenue Visibility of SLB
Under the agreement, SLB will provide design, engineering, procurement, construction and commissioning services, followed by four years of operations and maintenance support. The extended service component gives SLB exposure beyond the initial project phase and adds greater visibility to future revenues.
The expansion is expected to raise gross fluid-handling capacity to 548,000 barrels per day and is slated for completion within 19 months. The project’s scale and multiyear scope deepen SLB’s relationship with OQEP.
Repeat Award Highlights Execution Capabilities of SLB
The latest contract builds on SLB’s prior involvement at the Bisat Field, including the delivery of the Bisat-A facility in 2018 and the original Bisat-B facility in 2020. Repeat awards from OQEP highlight SLB’s execution track record and technical expertise in complex production infrastructure projects.
Middle East Spending Supports Growth Prospects of SLB
The Middle East remains an important growth market for SLB as producers continue investing in capacity expansion and infrastructure development. The Bisat-B award strengthens SLB’s regional project portfolio and supports demand for its integrated project delivery and production services.
SLB’s Investment View
The contract adds another long-duration project to SLB’s international portfolio while expanding recurring service opportunities. Stronger project backlog, recurring maintenance work and deeper customer relationships support cash flow visibility and strengthen the company’s competitive position in international energy services. This strengthens SLB’s business model, leading to enhanced investor appeal.
SLB’s Zacks Rank & Key Picks
SLB currently carries a Zacks Rank #3 (Hold).
The Bisat-B contract underscores the opportunities emerging from continued upstream investment, particularly across international markets. With West Texas Intermediate crude oil trading above the $90-per-barrel mark, according to Oilprice.com, favorable oil prices are likely to encourage exploration, drilling and production activity.
Higher upstream spending generally supports demand for oilfield equipment, drilling technologies and offshore services, benefiting companies with broad exposure to energy infrastructure and production activity.
Against this backdrop, investors may consider energy companies, such as Baker Hughes Company BKR, Oceaneering International, Inc. OII and RPC, Inc. RES. Baker Hughes, Oceaneering International and RPC provide equipment, technologies and services to upstream operators and are positioned to benefit from increased drilling activity and offshore spending.
BKR currently sports a Zacks Rank #1 (Strong Buy), while OII and RES carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.
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SLB Limited (SLB): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).