Saudi Arabia Awards SLB Contracts for 450 Wells

Saudi Arabia has awarded multinational oilfield services company SLB four integrated well construction contracts. SLB, formerly known as Schlumberger, will manage construction services, delivering 450 wells, the company said. The contracts have a three-year duration, with an option to extend by up to two years. “Delivering hundreds of wells across a multi-year programme and in multiple operating environments requires an integrated model that connects planning, execution and digital workflows,” said Steve Gassen, executive vice president of geographies for SLB. Following Iran’s effective closure of the Strait of Hormuz, Saudi Arabia shifted oil exports west to Yanbu, with the stated aim of shipping 5 million barrels per day (bpd). This ambition has been hampered as conflict with the Iran-backed Houthi group prevents Saudi vessels from passing through the Bab al-Mandab strait, which connects the Red Sea to Asian oil markets. The East-West pipeline, which had fed Yanbu with up to 7 million bpd, was damaged on September 10 but restarted this week, according to Reuters. Saudi Arabia has increased its use of shuttling to move oil through the Strait of Hormuz for ship-to-ship transfer off Oman. State oil giant Saudi Aramco can repair disrupted operations “within days” and is continuing to explore additional export routes for crude amid the Iran war, CEO Amin Nasser said in an interview with Nikkei Asia.