Schlumberger receives contract
On March 21, 2017, Schlumberger (SLB) announced that BP (BP), one of the largest integrated energy companies in the world, awarded SLB’s OneSubSea an engineering, procurement, and construction (or EPC) contract. OneSubSea will provide a subsea production system for the Mad Dog 2 development in the Gulf of Mexico. OneSubSea, once a joint venture between Cameron and Schlumberger, became a part of SLB after SLB acquired Cameron in April 2016.
In addition to this contract, Subsea 7, a UK-based offshore engineering, construction, and services company, also received an engineering, procurement, construction, and installation contract. OneSubSea collaborates with Subsea 7. Schlumberger makes up 3.2% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES).
Schlumberger’s Gulf of Mexico contract
On February 23, 2017, Schlumberger announced a new multi- and wide-azimuth (or M-WAZ) multiclient reimaging program for a ~23,000 square kilometer area in the Central Gulf of Mexico region. SLB expects final results from this program in early 2018. Read more on Schlumberger in Market Realist’s Stumbling Blocks Could Be on the Horizon for Schlumberger.
We’ll discuss Schlumberger’s stock price movement in comparison to industry ETFs next.