Saudi Arabia contracts SLB to drill 450 wells

Saudi Arabia has awarded multinational oilfield services company SLB four integrated well construction contracts.

SLB, formerly known as Schlumberger, will manage well construction services, delivering 450 wells, the company said.

The contracts have a three-year duration, with an option to extend by up to two years.

“Delivering hundreds of wells across a multi-year programme and in multiple operating environments requires an integrated model that connects planning, execution and digital workflows,” said Steve Gassen, executive vice president of geographies for SLB.

No financial details were disclosed.

Following Iran’s effective closure of the Strait of Hormuz, Saudi Arabia shifted oil exports west to Yanbu, with the stated aim of shipping 5 million barrels per day (bpd).

This ambition has been hampered by conflict with Houthis, who are preventing Saudi vessels from passing through the Bab al-Mandab strait, which connects the Red Sea to Asian oil markets.

The East-West pipeline, which had fed Yanbu with up to 7 million bpd, was damaged on September 10 but has restarted this week, according to Reuters.

Saudi Arabia has increased its use of shuttling to move oil through the Strait of Hormuz for ship-to-ship transfer off Oman.

In an interview with Nikkei Asia, CEO Amin Nasser said Aramco can repair disrupted operations “within days” and is continuing to explore additional export routes for crude amid the Iran war.

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Capital expenditures in the first half of 2026 rose more than 5 percent year on year to $20 billion. Development activity continued across multiple strategic gas projects and shifted to maintaining maximum sustainable capacity at 12 million bpd, according to the company’s second quarter of 2026 results.

Saudi Arabia’s government owns 81.5 percent of Aramco, and the Public Investment Fund holds 16 percent, leaving 2.5 percent available to minority investors.

Aramco shares closed 0.6 percent higher at SAR25.78 on Thursday, up more than 8 percent since January 1.