On Monday, Schlumberger N.V. (NYSE:SLB) disclosed the formation of a joint venture (JV) with ADNOC Drilling Company and Patterson-UTI Energy, Inc. (NASDAQ:PTEN) called Turnwell Industries LLC OPC.
The JV aims to accelerate the UAE's unconventional oil and gas program. It targets the completion of 144 wells by 2025, with the potential for additional wells in a second phase.
ADNOC Drilling will hold a 55% stake, with SLB and Patterson-UTI holding 30% and 15% stakes in the JV. SLB will provide drilling, completion services, project management, and digital solutions.
This deal is expected to enable the companies to leverage cutting-edge innovations in AI, smart drilling design, completions engineering, and production solutions.
Tarek Rizk, SLB's president for the Middle East and North Africa region, said, "We are proud to join forces with ADNOC Drilling in this strategic partnership that demonstrates SLB's leading position in the region deploying innovative digital, drilling and completion technologies in developing unconventional energy resources."
"UAE's unconventional energy assets hold a promising future, and we are very much looking forward to elevating their performance in a safe and sustainable way."
Abdulrahman Abdulla Al Seiari, chief executive officer, ADNOC Drilling stated, "Turnwell will not only unlock the immense potential of the UAE's world-class unconventional energy resources but will also set new benchmarks for the global energy industry. We are proud to lead the way in responsibly shaping the future of energy, both in the UAE and beyond."
Last month, Schlumberger partnered with NVIDIA to create generative AI solutions focusing on subsurface exploration and data management in energy.
Investors can gain exposure to SLB via VanEck Oil Services ETF (NYSE:OIH) and IShares U.S. Oil Equipment & Services ETF (NYSE:IEZ).
Price Action: SLB shares are down 0.74% at $41.64 premarket at the last check Tuesday.
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