What's Happening?
SLB has been awarded a five-year contract by Saudi Aramco to provide stimulation and related services for the Kingdom's unconventional gas development program. This agreement is part of a larger multi-billion-dollar initiative aimed at expanding Saudi Arabia's
domestic gas production capacity. Under the contract, SLB will deliver advanced stimulation services, well intervention, frac automation, and digital solutions to enhance efficiency and recovery in unconventional reservoirs. The contract supports Saudi Arabia's strategy to increase gas production as part of its long-term energy mix, reducing reliance on liquid fuels for power generation. Unconventional gas is expected to play a significant role in the Kingdom's upstream portfolio over the next decade.
Why It's Important?
This contract is significant as it aligns with Saudi Arabia's strategic goals to diversify its energy sources and reduce dependency on oil. By expanding its gas production capabilities, the Kingdom aims to meet domestic energy demands more sustainably and support economic growth. For SLB, this contract reinforces its position in the Middle East and showcases its expertise in deploying advanced technologies in complex environments. The development of unconventional gas resources is crucial for Saudi Arabia's energy security and economic diversification, potentially influencing global energy markets by altering supply dynamics.
