The development of new deepwater basins in Latin America and beyond presents significant growth opportunities for oilfield services giant SLB, according to Chief Executive Officer (CEO) Olivier Le Peuch. In a Friday conference call discussing the company’s second-quarter earnings, Le Peuch offered an optimistic view of global deepwater development.
SLB introduces cutting-edge technologies, achieving remarkable results in Guyana operations | OilNOW
Le Peuch emphasized that deepwater growth is driven by existing projects, upcoming investments, and ongoing exploration activities. “There is a strong portfolio of projects underway, from Guyana to Brazil, from Norway to parts of Asia… this will add years of growth to the deepwater outlook. It is a market with multiple legs,” he said.
He identified the Pelotas basin in Brazil as a particularly promising area for SLB. “The ongoing strength of the offshore market supported further growth in Europe and Africa as well as Latin America,” Le Peuch noted. “This was particularly pronounced in deepwater basins including Brazil.”
SLB’s international revenue grew by 18% year-on-year to US$7.45 billion, offsetting a 6% decline in North America. This marked the company’s highest quarterly international revenue since 2014, according to Le Peuch. In Latin America, SLB’s revenue increased by 7% to US$1.74 billion, driven by higher sales of production systems in Brazil and strong drilling activity in Argentina. However, these gains were partially offset by reduced drilling revenue in Mexico due to decreased activity by international oil companies.
Latin American operations contributed 19% to SLB’s total revenue of US$9.14 billion in the second quarter. The company reported an 8% increase in net income, reaching US$1.11 billion.
SLB asserts its position as the foremost technology provider in reservoir characterization, drilling, production, and processing for the global oil and gas sector. As a prominent service provider, SLB extends substantial technical support to Exxon, particularly in the Stabroek Block, facilitating the proving of hydrocarbon reserves.
In 2017, SLB made a substantial investment, establishing a lasting presence in Guyana with the inauguration of its US$75 million oil services facility base in Houston.
