HOUSTON - SLB (NYSE: SLB) has secured a contract from TotalEnergies (EPA:TTEF) (NYSE: TTE) for a 13-well Subsea Production System (SPS) and related services for the Kaminho project in Angola's Kwanza Basin.
This collaboration aims to develop the Cameia and Golfinho discoveries in two phases, with the first phase focusing on the Cameia field. The project will utilize a configurable subsea production platform with standardized equipment to enhance efficiency and production.
Mads Hjelmeland, CEO of SLB OneSubsea, expressed enthusiasm about the joint effort to tap into the substantial potential of the Kaminho project. The partnership is set to implement a contract model that combines standardization with configurable platforms to foster greater efficiencies and long-term value for projects in Angola and globally.
The Kaminho project is expected to contribute over 10 million man-hours in Angola, with a focus on offshore operations and construction at local yards. SLB OneSubsea will be instrumental in supporting various aspects of the project, including assembly, module manufacturing, installation, commissioning, and life-of-field services. The anticipated first oil production is targeted for 2028, aiming for an estimated output of 70,000 barrels per day.
SLB is recognized as a global technology company in the energy sector, with a presence in over 100 countries and a diversified workforce. The company is dedicated to driving energy innovation, digital integration, industry decarbonization, and the development of new energy systems to support the energy transition.
SLB OneSubsea, a joint venture supported by SLB, Aker Solutions, and Subsea7, is at the forefront of the new subsea era, focusing on digital and technological innovations to optimize oil and gas production, reduce the carbon footprint of subsea operations, and unlock the potential of subsea solutions for the energy transition.
The information for this article is based on a press release statement.
InvestingPro Insights
As SLB (NYSE: SLB) embarks on the ambitious Kaminho project with TotalEnergies, the company's financial health and performance metrics offer valuable insights for investors. SLB's market capitalization stands robust at $66.74 billion, reflecting the company's significant scale in the energy sector. With a consistent dividend payment history spanning 54 years, SLB demonstrates a strong commitment to shareholder returns, boasting a current dividend yield of 2.36%. This dedication to dividends is an important factor for income-focused investors, especially considering the company's moderate level of debt, which allows for financial flexibility.
Moreover, SLB's price-to-earnings (P/E) ratio is currently at 15.24, which, according to InvestingPro Tips, is high relative to near-term earnings growth. This indicates that the market may be pricing SLB with optimistic future earnings expectations. Additionally, the company's revenue has seen a healthy growth of 13.02% over the last twelve months as of Q1 2024, aligning with the company's strategic initiatives and technological advancements in energy production and digital integration.
Investors looking for more in-depth analysis can find additional InvestingPro Tips related to SLB's stock performance and financial metrics. For instance, SLB's stock is known to trade with low price volatility, which could be appealing for those seeking stable investment options in the energy sector. Furthermore, SLB has been profitable over the last twelve months, and analysts predict profitability will continue this year, reinforcing the company's financial strength. With 6 more InvestingPro Tips available, investors can gain a comprehensive understanding of SLB's financial landscape and make informed decisions by visiting InvestingPro. Don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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