SLB Wins Four Multi-Year Aramco Well Construction Contracts

SLB Secures Four Multi-Year Aramco Well Construction Contracts

Global energy technology company SLB has secured four integrated well construction contracts from Aramco to support oil and gas development activities across the Kingdom of Saudi Arabia. The awards expand SLB’s role in large-scale well construction programs and are expected to cover the delivery of more than 450 wells during an initial three-year contract period.

Each of the four contracts includes an option for an extension of up to two additional years, providing the potential for a five-year engagement. Through the agreements, SLB will manage end-to-end well construction services, bringing together planning, drilling, evaluation, fluids, cementing and completions capabilities under an integrated operating model.

The contracts build on a long-standing relationship between SLB and Aramco and represent an expansion of SLB’s integrated well construction activities in Saudi Arabia. The scale of the program reflects the increasing use of integrated approaches for complex drilling campaigns, where multiple technical disciplines and services must operate in coordination to deliver wells efficiently and consistently.

Steve Gassen, executive vice president of Geographies for SLB, said that delivering hundreds of wells over a multi-year program and across different operating environments requires an integrated model connecting planning, execution and digital workflows. He added that the awards demonstrate Aramco’s confidence in SLB’s integrated model and capabilities.

Under the contracts, SLB will apply its technology-enabled integrated well construction approach across the drilling program. The model is designed to connect different stages of well delivery through a coordinated operating framework rather than treating individual services as separate activities.

A central component of the approach is the use of digital drilling workflows. These workflows can connect planning and execution activities, supporting greater coordination between teams and helping operators manage information throughout the well construction lifecycle. SLB will also combine automated drilling technologies with formation evaluation, drilling fluids, cementing and completion services.

By bringing these capabilities together, the integrated model is intended to improve operational efficiency and execution consistency across large drilling programs. Standardizing workflows and coordinating technical services can also help create greater consistency between individual wells, particularly when projects involve large numbers of wells and varying operating conditions.

The four contracts will support oil and gas development across Saudi Arabia, requiring SLB to deliver services across multiple operating environments. The geographic and operational scale of the program makes coordination an important element of the work, with planning, field execution and technology deployment needing to remain aligned throughout the three-year term.

SLB’s integrated well construction offering is designed to address these requirements by placing multiple well delivery activities within a unified framework. Instead of coordinating individual services independently, the model brings drilling-related technologies and services together under an integrated delivery structure.

Automation is another important element of the approach. Automated drilling technologies can support the execution of drilling operations while digital systems provide workflows for planning, monitoring and decision-making. Combined with evaluation, fluids, cementing and completion capabilities, these technologies allow SLB to address multiple stages of well construction through a connected service model.

The contracts also illustrate the continuing development of integrated service models within the oil and gas industry. Large drilling programs involve numerous technical disciplines, equipment requirements and operational decisions. Coordinating these elements through an integrated structure can provide operators with a single framework for managing well delivery and performance.

For SLB, the awards further expand its integrated well construction business in one of the world’s major oil and gas producing regions. The company has worked with Aramco for decades, developing familiarity with the operator’s technical requirements and operating environments. The new contracts build on that established relationship while increasing the scale of SLB’s integrated responsibilities.

The planned delivery of more than 450 wells represents a substantial multi-year workload. At that scale, consistency across individual wells becomes an important consideration. An integrated approach can help establish common processes for planning, execution and technology deployment while allowing specific operations to be adapted to local geological and operational conditions.

The three-year base term also provides a framework for long-term planning. With an optional extension of up to two years, the agreements could potentially support continued well construction activities for as long as five years. This longer-term structure can allow service providers and operators to coordinate resources, technologies and workflows over an extended drilling campaign.

The awards come as oil and gas companies continue to examine ways to improve drilling efficiency and optimize well construction through technology. Digitalization and automation are increasingly being incorporated into drilling operations, while integrated service models seek to connect technologies and expertise across multiple stages of the well lifecycle.

For Aramco, the contracts provide access to SLB’s combined well construction capabilities through a coordinated delivery model. For SLB, the agreements create an opportunity to deploy its digital and automated technologies at significant scale across Saudi Arabia.

The contracts also reinforce the role of integrated well construction as a delivery model for large-scale drilling programs. By connecting planning, drilling, evaluation, fluids, cementing and completions, SLB aims to provide a consistent approach from initial well planning through completion.

As the programs progress, SLB is expected to apply its integrated operating model across the more than 450 wells included in the initial contract terms. The combination of digital workflows, automated drilling and integrated technical services will form the foundation of the company’s delivery strategy.

The latest awards therefore represent both an expansion of SLB’s work with Aramco and a broader application of its integrated well construction model in Saudi Arabia. With multi-year contracts covering hundreds of wells and the possibility of further extensions, the agreements establish a substantial platform for SLB to deliver connected drilling technologies and services across the Kingdom’s oil and gas development activities.

Source Link: https://www.slb.com/

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