2023 was a good year for the service companies, with SLB and Halliburton reporting strong growth in the Middle East and looking forward to further success this year
In its Q4 and full year 2023 results SLB, which recorded 20% growth in international revenue in 2023, reported its highest-ever revenue in the Middle East, led by impressive growth in Saudi Arabia, the United Arab Emirates, and Egypt & East Mediterranean GeoUnits.
“Revenue in the Middle East & Asia of US$3.14bn increased 11% sequentially fuelled by robust activity growth in Saudi Arabia, the United Arab Emirates, Qatar, Egypt & East Mediterranean, East Asia, and Oman GeoUnits. This increase was driven by higher drilling, intervention, stimulation, and evaluation activity, both on land and offshore. Year on year, fourth-quarter revenue increased 25%, propelled by significant growth in Saudi Arabia, the United Arab Emirates, Egypt & East Mediterranean, Kuwait, Oman, and East Asia GeoUnits,” SLB reports.
Growth forecast to continue in 2024
With continued growth in global energy demand, SLB anticipates another year of strong growth in 2024, with “record investment levels” in the Middle East extending beyond 2025, despite elevated geopolitical tensions, with significant expansion expected in Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait. SLB also highlights offshore activity in the Middle East and the Eastern Mediterranean.
In terms of its business lines, SLB recorded 20% growth in its core business, comprising Reservoir Performance, Well Construction and Production Systems. In Saudi Arabia it was awarded a contract by Saipem for valves and actuators for Qatif, Marjan, Abu Safah, and Safaniyah fields, to be installed in shallow-water subsea lines that are critical for permanent downhole monitoring.
SLB also highlights the growth in its digital and energy transition solutions. Key contracts in the Middle East include one with the Kuwait Drilling Company (KDC) to deploy the DrillPlan coherent well design and engineering solution on Delfi as the planning environment for its directional drilling services, enabling KDC to produce better drilling plans quickly and efficiently by using AI, machine learning, and the high-performance computing environment on the cloud. Also in Kuwait, Kuwait Oil Company (KOC) partnered with SLB INNOVATION FACTORI to develop and deploy AI and machine learning-based drilling, production, and subsurface workflows for its multiple assets. In the UAE, Sharjah National Oil Corporation awarded SLB a CCS consultancy project with the objective to inject CO2 and other gases into mature onshore Sharjah gas fields.
Great year for Halliburton
Meanwhile Halliburton recorded total revenue for the full year of 2023 of US$23bn, an increase of US$2.7bn, or 13% from 2022.
“2023 was a great year for Halliburton, both of our divisions achieved their highest operating margins in over a decade," commented Jeff Miller, chairman, president and CEO. “I am excited about 2024. The outlook for oilfield services demand remains strong. I expect we will deepen and strengthen our value proposition, and generate significant free cash flow."
Middle East/Asia revenue in the fourth quarter of 2023 was US$1.5bn, an increase of 7% sequentially, primarily due to improved activity across multiple product service lines in Kuwait, Saudi Arabia, and Oman, and higher completion tool sales in the United Arab Emirates.
In Halliburton's technology highlights, digitalisation features strongly. In the Middle East, Halliburton mentions its collaboration with AIQ and ADNOC to successfully launch an AI-enabled Autonomous Well Control solution, RoboWell, across the ADNOC's North East Bab asset in Abu Dhabi, United Arab Emirates. The project, which is the first ever AI-supported Advanced Process Control solution for gas lifted wells, enables autonomous wells that can self-adjust to maximise production within specified operating conditions, utilising real-time data.
