SLB’s OneSubsea joint venture announced that it has been awarded a multi‑well engineering, production and construction (EPC) contract by China National Offshore Oil Corporation (CNOOC). The award covers 20 wells and the delivery of integrated subsea production systems for the Kaiping 18‑1 field in the South China Sea.
The contract, which was announced on March 17, 2026, will see OneSubsea design, build and install a standardized subsea production system that integrates wellhead, flowlines, and processing equipment. The project is expected to enhance operational efficiency and reduce lifecycle costs for CNOOC’s development in the region.
Management said the win demonstrates the growing adoption of OneSubsea’s standardized systems and the efficiency gains they can deliver on complex multi‑well projects. “By applying proven designs and working closely with regional partners, we can help streamline execution and support effective delivery for CNOOC,” said Mads Hjelmeland, CEO of OneSubsea.
The contract adds a new revenue stream to SLB’s portfolio, reinforcing the company’s strategy to grow its digital and subsea businesses. While the contract value was not disclosed, the win is part of a broader effort to secure large, complex projects that can offset short‑term headwinds in other regions.
SLB’s Q1 2026 earnings warning, driven by operational disruptions in the Middle East, has weighed on investor sentiment. Analysts have raised price targets for the company, citing the long‑term upside from projects such as this one in the South China Sea. The contract win is viewed as a positive tailwind that supports SLB’s long‑term growth trajectory despite near‑term geopolitical challenges.
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