SLB N.V. SLB has strengthened its offshore business by securing a major engineering, procurement and construction contract through its OneSubsea joint venture for Eni S.p.A.’s E Baleine Phase 3 deepwater development offshore Cote d’Ivoire. The award strengthens SLB's long-standing partnership with Eand reinforces its leadership in integrated subsea production systems for long-term offshore development.
The agreement spans 13 wells and encompasses the delivery, installation, commissioning and lifetime support of critical subsea equipment, such as subsea trees, umbilical, manifolds, multiphase flowmeters and control systems. The integrated delivery framework is optimized to expedite project execution and meet accelerated development milestones.
The Baleine project stands as a cornerstone of West Africa's offshore sector, making this contract strategically important for SLB's subsea business. By providing a complete subsea production system , SLB creates opportunities for long-term cash flow generation through service and maintenance operations. SLB OneSubsea’s established in-country footprint and local operational expertise are expected to facilitate highly efficient project execution.
The contract highlights SLB's continued transition toward higher-value integrated offshore solutions that generate stronger cash flows. SLB's ongoing partnership with Eni on major projects boosts its subsea order backlog, strengthening its business model and investor appeal.
SLB currently carries a Zacks Rank #3 (Hold), while Eni has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the energy sector are Cenovus Energy Inc. CVE and National Energy Services Reunited Corp. NESR. CVE currently carries a Zacks Rank #2 (Buy), while NESR sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
By leveraging its fully integrated upstream and downstream operations in Canada and the United States, Cenovus consistently generates robust cash flow. To further expand production, CVE is advancing key optimization initiatives at Christina Lake North, Sunrise, West White Rose and Foster Creek.
National Energy Services Reunited delivers integrated drilling and reservoir services across the Middle East, North Africa and Asia-Pacific, helping producers maximize output and efficiency. With the rising global demand for electricity fueling a shift toward natural gas, NESR is well-positioned to capitalize on growing upstream energy investments.
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This article originally published on Zacks Investment Research (zacks.com).