SLB, an energy technology company, has been awarded a series of drilling contracts to enhance Shell’s deep and ultra-deep-water operations in multiple regions.
The contract will support Shell’s capital-efficient energy development across various global assets in the UK North Sea, Trinidad and Tobago and the Gulf of Mexico.
The collaboration, spanning a three-year period, will leverage SLB's AI-driven digital drilling capabilities and deep-water expertise to deliver consistent, cost-efficient wells.
The contract encompasses a suite of services including digital directional drilling, logging while drilling, surface logging, cementing and wireline services.
SLB's centralised Performance Live centres will manage the projects, aiming for optimised execution.
SLB Offshore Atlantic president Wallace Pescarini said: “We are proud to continue our long-standing relationship with Shell through the fulfilment of these multi-region deep-water contracts.
“Over the years, we have worked diligently to provide safe, high-quality services to our customers, including Shell. Drawing on our global expertise in complex deep-water environments and advanced technology solutions, we will align with Shell’s expectations for safe and efficient energy development on these projects.”
Shell’s fourth quarter (Q4) 2024 outlook update reported a decrease in integrated gas production in Q3 2024, with further reductions anticipated in Q4 due to maintenance activities.
Shell predicts a decline in liquefied natural gas volumes and trading results in Q4 2024 due to lower feed gas levels and expiring hedges.
Trading and optimisation results are predicted to be weaker in Q4 2024 compared with Q3 due to the expiration of hedging contracts that shielded Shell from potential losses after the Russia-Ukraine conflict. Exploration well write-offs are expected to be around $300m in Q4 2024.
The upstream segment is projected to experience a decline in production and increased operational expenses in Q4.
Pre-tax depreciation and taxation charges are also expected to fluctuate, while exploration write-offs will rise to around $400m. Joint ventures and associates are expected to contribute modestly.
Additionally, the share of profit or loss from joint ventures and associates is anticipated to be around $300m in the same period.
