SLB SLB, an American oilfield services company, has partnered with Velesto Drilling, a subsidiary of Malaysia's Velesto Energy, to revolutionize rig capabilities through advanced digital solutions. This collaboration is aimed at enhancing drilling performance and reducing emissions, leveraging cutting-edge technology, to address industry challenges.
The memorandum of understanding (MoU) was signed during an event in Monaco, marking the beginning of a three-year partnership between the companies. SLB will deploy its DrillOps Intelligent Well Delivery and Insights Solutions along with its Drilling Emissions Management Solutions on Velesto’s rigs in Malaysia. This collaboration is expected to improve the technical capabilities of Velesto’s rig operations, enhancing safety and efficiency.
According to Megat Zariman Abdul Rahim, president of Velesto, this agreement represents a "significant shift" in the company’s approach to drilling. By integrating advanced digital tools, both companies aim to deliver high-performance outcomes while monitoring and reducing emissions — a critical factor in energy transition.
The digital solutions offered by SLB, such as DrillOps, are designed to optimize and streamline drilling operations. These tools will improve rig efficiency and provide real-time insights, allowing Velesto to make data-driven decisions that enhance productivity. SLB’s Drilling Emissions Management Solutions will also help Velesto monitor and control emissions, contributing to more sustainable operations.
This partnership reflects both companies’ commitment to innovation in addressing the oil and gas sector’s evolving demands. Velesto recently completed a mandatory five-year special periodical survey for one of its jack-up rigs, which is set to resume drilling operations with Petronas in Sarawak.
The integration of SLB's digital tools is expected to enhance Velesto’s rig performance, making it more competitive in the global market.
Currently, SLB carries a Zack Rank #4 (Sell).
Investors interested in the energy sector may look at some better-ranked stocks like PEDEVCO Corp. PED, Archrock Inc. AROC and Core Laboratories Inc. CLB. While PEDEVCO and Archrock sport a Zacks Rank #1 (Strong Buy) each, Core Laboratories carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. PED stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations.
The Zacks Consensus Estimate for PED’s 2024 EPS is pegged at $0.08. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days.
Archrock is an energy infrastructure company based in the United States, focusing on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.04. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
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