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SLB OneSubsea Awarded Contract for Phase 3, Stage 2 of Equinor’s North Sea Troll Project

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SLB OneSubsea has been awarded a significant contract by Equinor for the second stage of Phase 3 of the Troll project in the North Sea. This contract builds on an existing long-term agreement and aims to accelerate the production of about 55 billion standard cubic meters of gas. SLB OneSubsea will employ North Sea compliant, configurable equipment for standardized subsea production systems. The expanded scope includes nine vertical trees, wellheads, tubing hangers, control modules, bridge modules, templates, topside controls integration, and umbilicals. This move solidifies SLB's position as a key supplier to Equinor.

Positive
  • Award of a significant contract by Equinor for the Troll project.
  • The project aims to accelerate production of approximately 55 billion standard cubic meters of gas.
  • Utilization of North Sea compliant, configurable equipment for the project.
  • The expanded scope includes nine standard NCS2017+ vertical trees and other critical components.
  • Strengthening of SLB OneSubsea's long-term relationship with Equinor.
  • The project cements SLB OneSubsea's position as a trusted supplier to Equinor.
Negative
  • No specific financial figures or contract values were disclosed.
  • Potential risks associated with the complex execution of subsea projects.
  • Dependence on the successful integration of various equipment and systems.

The award of the contract to SLB OneSubsea by Equinor for Phase 3, Stage 2 of the Troll project is a significant development in the energy sector. It indicates a continued investment in the North Sea's mature fields, emphasizing the value these resources still hold. The contract is substantial, involving critical infrastructure upgrades and new installations such as nine standard NCS2017+ vertical trees and two 4-slot templates. This suggests a robust commitment from Equinor to enhance gas production from the Troll field, targeting an additional 55 billion standard cubic meters of gas.

For investors, this contract implies potential revenue growth for SLB, as the project will involve the deployment of advanced subsea technologies. Additionally, the use of standardized, configurable solutions underlines the efficiency and cost-effectiveness that SLB OneSubsea brings to the table, which could bolster their market position in the long term.

From a financial perspective, this contract can positively impact SLB's revenue stream. Contracts of such magnitude ($money) often signify a stable, recurring income, which is important for sustaining growth and profitability. The reference to the established frame agreement from 2017 indicates a strong, enduring relationship with Equinor, likely translating to sustained business and cash flow stability.

This expanded scope provides insights into SLB's strategic approach to leverage existing relationships while enhancing its service offering in the high-value North Sea region. Furthermore, this project aligns well with the broader industry trend of increasing investments in offshore gas production, which might be attractive for long-term investors focusing on the energy sector.

The announcement highlights SLB OneSubsea's technical capabilities and strategic positioning in the oil and gas industry. The Troll field, one of the largest gas fields on the Norwegian Continental Shelf, is important for Equinor. The project's focus on accelerating production underscores the importance of timely and efficient execution, which SLB OneSubsea aims to achieve with its standardized subsea production systems compliant with NCS2017+.

The advanced equipment, including compact bridge modules with wet gas flow meters, points to a sophisticated approach to managing gas flow and monitoring subsea conditions. This technological edge can potentially reduce operational risks and enhance production efficiency, thereby offering significant value to Equinor and its stakeholders.

For SLB, this contract not only reinforces its reputation as a reliable service provider but also showcases its ability to deliver innovative solutions that meet stringent regional standards. Such factors are likely to enhance its competitive edge in securing future contracts within the sector.

Award expands previous contract with significant added scope at the Troll field

HOUSTON--(BUSINESS WIRE)-- Regulatory News:

SLB OneSubsea is leveraging North Sea compliant, configurable equipment for Equinor’s North Sea Troll project. (Photo: Business Wire)

SLB OneSubsea is leveraging North Sea compliant, configurable equipment for Equinor’s North Sea Troll project. (Photo: Business Wire)

SLB (NYSE: SLB) has announced the award of a sizeable contract by Equinor to its OneSubsea™ joint venture. The award leverages an existing long-term contract for the execution of the second stage of Phase 3 for Equinor’s Troll project in the North Sea, offshore Norway.

To accelerate field delivery of the subsea tieback to existing infrastructure, SLB OneSubsea will leverage configurable solutions compliant with NCS2017+ for standardized subsea production systems for application in the Norwegian Continental Shelf (NCS). The objective for Troll Phase 3, Stage 2 is to accelerate production from the reservoir equivalent to about 55 billion standard cubic meters of gas.

“We deeply appreciate our long-standing relationship with Equinor, and we look forward to continuing our collaboration on the Troll field,” said Mads Hjelmeland, CEO of SLB OneSubsea. “This frame agreement is and has been an important conduit for joint value creation, supporting the transparency, teamwork and collaborative solutions necessary to unlock maximum value from our NCS projects together.”

The Troll field is located in the northern part of the North Sea, offshore Norway. The 8-well project, with a tieback to the Troll A Condeep platform, is the latest to be signed under the collaborative frame agreement signed with Equinor in 2017 and further cements SLB OneSubsea’s position as a trusted supplier to Equinor. The expanded scope includes nine standard NCS2017+ vertical trees including wellheads, tubing hangers, subsea control modules, compact bridge modules with wet gas flow meters, two 4-slot templates, topside controls integration, and two umbilicals.

About SLB

SLB (NYSE: SLB) is a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

About SLB OneSubsea

SLB OneSubsea is driving the new subsea era that leverages digital and technology innovation to optimize our customers’ oil and gas production, decarbonize subsea operations, and unlock the large potential of subsea solutions to accelerate the energy transition. SLB OneSubsea is a joint venture backed by SLB, Aker Solutions, and Subsea7 headquartered in Oslo and Houston, with 10,000 employees across the world. Find out more at onesubsea.slb.com.

About Equinor

Visit: equinor.com

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “can,” “estimate,” “intend,” “anticipate,” “will,” “potential,” “projected" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as forecasts or expectations regarding the deployment of, or anticipated benefits of, SLB’s new technologies and partnerships; statements about goals, plans and projections with respect to sustainability and environmental matters; forecasts or expectations regarding energy transition and global climate change; and improvements in operating procedures and technology. These statements are subject to risks and uncertainties, including, but not limited to, the inability to achieve net-negative carbon emissions goals; the inability to recognize intended benefits of SLB’s strategies, initiatives or partnerships; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the timing or receipt of regulatory approvals and permits; and other risks and uncertainties detailed in SLB’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Media

Moira Duff

Director of External Communications

Tel: +1 (713) 375-3407

Email: media@slb.com

Investors

James R McDonald

SVP of Investor Relations & Industry Affairs

Joy V. Domingo

Director of Investor Relations

Tel: +1 (713) 375-3535

Email: investor-relations@slb.com

Source: SLB

FAQ

What is the recent contract awarded to SLB OneSubsea by Equinor?

SLB OneSubsea has been awarded a significant contract by Equinor for the second stage of Phase 3 of the Troll project in the North Sea.

What is the objective of the Troll Phase 3, Stage 2 project?

The objective is to accelerate production from the reservoir, equivalent to about 55 billion standard cubic meters of gas.

What equipment will SLB OneSubsea use for the Troll project?

SLB OneSubsea will employ North Sea compliant, configurable equipment for standardized subsea production systems.

What is included in the expanded scope of SLB OneSubsea’s contract for the Troll project?

The expanded scope includes nine vertical trees, wellheads, tubing hangers, control modules, bridge modules, templates, topside controls integration, and umbilicals.

How does this contract impact SLB's relationship with Equinor?

This contract strengthens SLB OneSubsea's long-term relationship with Equinor and cements its position as a trusted supplier.

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