Schlumberger to build over 100 wells for Petrobras, a bold move for offshore services

In a significant new development in the offshore oil industry, Schlumberger N.V. has been awarded an $800 million contract by Petrobras, Brazil's state-controlled oil company. This contract represents a major expansion of their ongoing partnership, which has spanned several decades, and signifies a substantial commitment to local content through sourcing much of the necessary technology and equipment from within Brazil. The contract, which was awarded following a competitive tender process, is expected to significantly improve operational efficiency and environmental sustainability in Petrobras's offshore operations. The awarded contract specifically tasks Schlumberger with overseeing the construction of over 100 deepwater wells across various areas of Brazil's offshore oil fields, including Campos, Santos, and Espírito Santo Basins. The scope of services will involve the implementation of advanced technologies in areas such as drilling, cementing, and the management of drilling fluids. These technologies aim to enhance productivity, mitigate operational risks, and reduce emissions, ultimately making Petrobras's operations safer and more efficient. Additionally, the contract includes provisions for operations in the Equatorial Margin of Brazil, contingent on the approval of exploration licenses, indicating that there may be future expansions in the geographical reach of Schlumberger's services for Petrobras. The three-year contract is set to commence in April 2025, laying the groundwork for significant developments in both companies' operational strategies and goals as future energy needs evolve. As the oil industry continues to face challenges ranging from fluctuating market prices to increasing regulatory scrutiny concerning environmental impacts, this new contract is seen as a proactive measure to leverage cutting-edge technology in enhancing the overall efficiency of offshore operations. This partnership not only reflects Schlumberger's long-standing relationship with Petrobras but also underscores its commitment to innovate in technology deployment while ensuring local sourcing and sustainability are prioritized in Brazil's rapidly evolving energy landscape.