Summary
SLB has issued a statement addressing Saudi Aramco's decision to maintain its Maximum Sustainable Capacity (MSC) at 12 million barrels per day, foregoing the increase to 13 MMBD. CEO Olivier Le Peuch clarified that while two offshore oil increment projects will be suspended, all ongoing oil and gas projects remain intact. This decision is not expected to materially impact SLB's growth outlook for the Kingdom in 2024, as their revenue mix is weighted towards onshore and the expanding gas market. SLB remains confident in a multi-year growth cycle in the Middle East, supported by their market position and the projected increase in global energy demand through the end of the decade. The company reiterates its positive outlook on the strength and longevity of the current cycle, expecting continued growth through 2024 and beyond.
Key Highlights
- 1Saudi Aramco will maintain its Maximum Sustainable Capacity at 12 MMBD, not increase to 13 MMBD.
- 2Two offshore oil increment projects in Saudi Arabia will be suspended, but all ongoing projects remain intact.
- 3SLB's 2024 growth forecast for Saudi Arabia remains unchanged.
- 4The company's revenue mix in Saudi Arabia, weighted towards onshore and gas, supports their outlook.
- 5SLB sees continued multi-year growth in the Middle East due to its market position and regional dynamics.
- 6Global energy demand is increasing, positioning international production to meet supply needs through 2030.
- 7SLB expresses confidence in the strength and longevity of the energy cycle through 2024 and beyond.