SLB wins contract for carbon storage wells in UK North Sea project

LONDON - Energy technology company SLB (NYSE:SLB), a $45.31 billion market cap leader in energy innovation, has secured a contract to develop carbon storage wells in the North Sea for the Northern Endurance Partnership (NEP), according to a press release statement issued Tuesday. According to InvestingPro analysis, SLB maintains a GREAT financial health score and currently appears undervalued based on its Fair Value assessment.

The contract involves constructing six carbon storage wells using SLB’s Sequestri carbon storage solutions portfolio. The project scope encompasses drilling, measurement, cementing, fluids, completions, wireline and pumping services. With annual revenue of $35.48 billion and a strong track record of maintaining dividend payments for 55 consecutive years, SLB demonstrates robust operational capabilities for such large-scale projects.

NEP is a joint venture between bp, Equinor and TotalEnergies that is developing infrastructure to transport carbon dioxide from industrial capture projects in Teesside and the Humber regions to underwater storage sites in the North Sea.

The infrastructure being developed by NEP aims to transport and permanently store up to 4 million metric tons of CO2 annually when operations begin in 2028. According to the release, the NEP storage sites have access to up to 1 billion metric tons of CO2 storage capacity.

Katherine Rojas, senior vice president of Industrial Decarbonization at SLB, said the company’s technologies will "play a critical role in shifting the economics and safeguarding the integrity of carbon storage projects."

The project is part of the broader East Coast Cluster initiative, which targets carbon reduction in the UK’s industrial regions. The development is considered significant for the UK’s efforts to achieve its net zero emissions goals.

SLB, formerly known as Schlumberger, describes itself as a global technology company with operations in more than 100 countries focused on energy innovation, digital solutions, and decarbonization of industries. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with additional ProTips and detailed metrics in its Pro Research Report, available as part of the subscription covering 1,400+ top US stocks.

In other recent news, SLB’s second-quarter 2025 financial results have drawn varied reactions from analysts. UBS maintained its Buy rating and a $45 price target, noting concerns about SLB’s outlook for the second half of 2025, including issues related to CHX contributions and tariffs. Stifel also kept a Buy rating but lowered its price target to $50, citing acquisition adjustments despite in-line quarterly results. Meanwhile, RBC Capital reduced its price target to $46, pointing to macroeconomic uncertainties affecting the oilfield services sector. Piper Sandler reiterated a Neutral rating with a $42 price target, reflecting investor disappointment with SLB’s 2025 pro forma outlook. In contrast, Bernstein maintained an Outperform rating with a $63 price target, highlighting a stabilizing outlook and potential easing of capital expenditure cuts. These developments indicate a mixed sentiment among analysts regarding SLB’s future performance.

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