SLB to Sell Palliser Block Assets in Alberta

SLB has announced a definitive agreement to sell its interests in the Palliser Block located in Alberta, Canada.

The Palliser Block consists of oil and gas wells, surface facilities, a pipeline network and certain oil and gas development rights, SLB said in a news release.

The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close late in the fourth quarter. The buyer of the assets and the financial details were not disclosed by the company.

In October 2017, SLB, then named Schlumberger, and private exploration and production (E&P) firm Torxen Energy purchased the Palliser Block from integrated Canadian oil company Cenovus Energy for cash consideration of approximately $1 billion (CAD 1.30 billion).

According to an earlier statement, the Palliser Block consists of oil and gas wells, surface facilities, a pipeline network, and approximately 800,000 acres of oil and gas development rights. The assets had production of approximately 54,000 barrels of oil equivalent per day (boepd) bordered the acreage awarded to the Schlumberger Production Management (SPM) and Torxen joint venture established in the same year.

Under the 2017 agreement, Schlumberger was the majority non-operating owner, with the rights to exclusive service provision, and Torxen was the operator. The strategy of the two companies focused on oil development and included a multiyear drilling program of more than 1,600 oil wells.

OneSubsea Bags Contract from Petrobras

Meanwhile, SLB’s OneSubsea joint venture was recently awarded a major contract by Petrobras, following a competitive tender, for the Roncador project in the Campos Basin offshore Brazil.

As part of the project scope, OneSubsea will provide two subsea production manifolds, one electro-hydraulic distribution unit and additional related services, according to a separate news release.

SLB OneSubsea will provide the full subsea equipment scope for the project, including subsea production manifolds, subsea control systems, distribution units, and toolkits, as well as field services for installation, commissioning, intervention, preservation and maintenance.

Roncador is one of Brazil’s five largest producing assets and has been in production since 1999, yet today it still retains significant reserves potential. The provision of an effective subsea solution will help improve recovery from the oilfield, SLB said.

Most of the technology and equipment to be deployed will be produced and serviced locally at SLB OneSubsea’s facilities in Brazil.

“This award further strengthens our valued relationship with Petrobras," Mads Hjelmeland, CEO of SLB OneSubsea, said. “Helping our customers extend the life of their assets is core to our strategy, and we are pleased to be supporting the revitalization of Roncador”.

Earlier this month, SLB also created a joint venture with ADNOC Drilling Company and Patterson UTI for unconventional oil and gas development.

The joint venture, called Turnwell Industries LLC OPC, will allow the three companies to “leverage leading innovations in AI [artificial intelligence], smart drilling design, completions engineering and production solutions,” SLB said in another news release. ADNOC Drilling, through its wholly owned subsidiary ADH RSC LTD, will hold a 55 percent majority equity stake. SLB will hold a 30 percent equity stake and Patterson-UTI the remaining 15 percent equity stake.

The joint venture will focus on fast-tracking the United Arab Emirates’ (UAE’s) unconventional oil and gas program, with an initial 144 wells scheduled for completion by the end of 2025. SLB said it plans to provide integrated drilling, stimulation and completion services, as well as project management, digital capabilities and subsurface support as part of the venture.

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