Skip to content Skip to Search
Skip navigation

SLB still confident in Middle East despite Aramco hit

By Eva Levesque
SLB CEO Olivier Le Peuch. The company said it is forming partnerships in the geothermal energy field with government agencies in the Middle East Reuters/Liz Hampton
SLB CEO Olivier Le Peuch. The company said it is forming partnerships in the geothermal energy field with government agencies in the Middle East
  • Record earnings in 2023
  • Rig count to rise this year
  • Share price fell with Saudi cut

US oilfield services company SLB is expecting significant growth in the Middle East this year, despite its share price taking a hit following this week’s output announcement by Saudi Aramco. 

SLB shares fell by more than 6 percent after Aramco’s decision to ditch the plan to boost its oil output capacity. The company’s income is strongly linked to the region.

During its latest earning call, SLB revealed that it had achieved its highest revenue in the Middle East, led by Saudi Arabia, the UAE, Egypt and the East Mediterranean.

Total 2023 revenue increased 18 percent to $33 billion year on year, while Middle East and Asia revenue rose by 22 percent.

SLB’s fourth-quarter revenue of nearly $9 billion increased by 8 percent.

The company said that in addition to its core business, it forged new partnerships and investments in technology for carbon capture and storage (CCS).

“We are actively participating in more than $400 million CCS tenders globally,” said SLB CEO Olivier Le Peuch.

SLB is also forming partnerships in the geothermal energy field with government agencies in the Middle East.

“We are seeing very positive momentum in this space,” added Le Peuch.

He said that he expected SLB business to rise in the Middle East as countries invest in expanding their production capacity in oil and unconventional gas.

“Growth momentum is set to continue with more than two-thirds of total investment taking place in the Middle East, offshore, and gas resource plays,” said Le Peuch.

The company also expects the rig count to continue to rise in the Middle East in 2024.

Following Aramco’s announcement to maintain its output capacity at 12 million barrels per day, Le Peuch pointed out on Wednesday that SLB’s revenue is weighted toward onshore and the expanding gas market in Saudi Arabia.

The US company landed a service agreement for the unconventional gas scheme Jafurah last year, the Middle East’s largest liquid-rich shale gas play. 

“Our unique market position in other countries in the Middle East will continue to support the multi-year growth cycle in the region,” Le Peuch added.

SLB also signed an exclusive digital drilling deal last year with Qatargas. 

Le Peuch said he expects global energy demand to increase, and international production would play a key role in meeting supply through the end of this decade.

“We are confident in the strength and longevity of this cycle through 2024 and beyond.”

Latest articles

Terminal, City, Outdoors

Private sector to propel Sharjah’s economic growth

Global rating agency S&P has affirmed Sharjah’s rating at “BBB-/A-3” and maintained a stable outlook citing strong private-sector activity as a key driver of economic growth. The emirate, one of seven that makes up the UAE, is expected to average 2.8 percent growth between 2024 and 2027, supported by manufacturing, construction, transport, and trade sectors.  […]

Dar Al Arkan Q1 profit rises 31% on higher property sales

The net profit of Saudi Arabian real estate firm Dar Al Arkan rose 31 percent in the first quarter of 2024 to SAR154 million ($41 million).  The earnings increase was driven by higher property sales, a fall in operating expenses, and higher non-operating income from Islamic deposits. Property sales increase drove revenue higher by 13 […]

Mineral products contributed the highest value at OMR839 million among Oman's non-oil commodity exports, a 143 percent surge year on year

Oman’s trade surplus rises 21% on higher crude exports

Oman’s trade surplus rose 21 percent year on year to OMR1.7 billion ($4.4 billion) by the end of February 2024, according to government data. The total value of merchandise exports reached OMR4.4 billion during the period, a 20 percent increase, compared to OMR3.7 billion a year ago, state-run Oman News Agency reported, citing statistics from the […]

Smasco will offer 120 million shares in its IPO, or a 30 percent stake

Smasco market cap to hit $800m on Saudi listing

Smasco, the Saudi Manpower Solutions Company, has set its final initial public offering (IPO) price at SAR7.50 per share, giving it a market capitalisation of SAR3 billion ($800 million) at listing. The company will offer 120 million shares, or a 30 percent stake, raising SAR900 million from the listing. This month, the indicative price range […]