Houston, Texas based Schlumberger Limited said this week the first quarter of 2021 represented a ‘strong step forward’ with acceleration in North America activity and momentum continuing to build in the international markets.
The company has been able to expand its global operating margins for the third consecutive quarter, and free cash flow remained positive.
“The depth and diversity of our international franchise gives us great exposure to this market expansion, especially in Well Construction and Reservoir Performance, which will lead in the second quarter,” said Olivier Le Peuch, CEO of Schlumberger.
The company said well Construction revenue of $1.9 billion increased 4% sequentially and margins increased 103 basis points to 10.8% due to increased activity in North America land and Latin America. This growth was partially offset by the seasonal slowdown in drilling activity in Russia and China.
“In South America, Total awarded Schlumberger a contract for services across multiple Divisions for a 4- to 10-well deepwater appraisal and exploration campaign in Block 58 offshore Suriname,” Schlumberger said. “The campaign commenced in February 2021 following discoveries in the block during 2020, for which Schlumberger delivered the majority of the Well Construction services.”
Total and Apache are expected to make their Final Investment Decision (FID) to develop oil fields at Block 58 later this year in what experts say could be the second fastest ramp up in oil production activities in the Guyana-Suriname basin this decade.
The explorers announced their first discovery at Maka Central-1 back in January 2020 and have gone on to make other discoveries on the block since then at Sapakara West-1, Kwaskwasi-1, and Keskesi East-1.
Total recently confirmed that plans are underway to begin developing oil fields at Block 58 as early as 2025, around five years after the Maka Central-1 discovery. If successful, this would mark the second fastest development ramp up in the Guyana-Suriname basin since U.S. oil major ExxonMobil hit first oil at the Liza field in Guyana in December 2019, just under five years from its first discovery in 2015.