LONDON - SLB (NYSE: SLB) and TotalEnergies (EPA:TTEF) (NYSE: TTE) have entered into a decade-long collaboration to co-develop digital solutions aimed at improving access to energy resources while enhancing performance and efficiency. The partnership, announced today, will focus on the integration of advanced digital capabilities, such as artificial intelligence (AI), into the energy value chain, with an initial emphasis on subsurface digital solutions for reservoir engineering and geoscience modeling.
The companies will leverage SLB's Delfi digital platform and adhere to the Open Group's OSDU Technical Standard to accelerate the development and deployment of these digital solutions. This collaboration is expected to benefit TotalEnergies' global operations and SLB's worldwide customer base by combining both companies' expertise in digital and domain knowledge.
Rakesh Jaggi, President of SLB's Digital & Integration business, emphasized the importance of collaboration and knowledge sharing in the industry to develop more effective ways of unlocking energy access. He stated that the partnership is set to accelerate the delivery of new digital capabilities that will benefit the whole industry.
The digital partnership will prioritize the creation of next-generation software, digital applications, and new algorithms applied to geoscience, according to Namita Shah, President of OneTech at TotalEnergies. She noted that these innovative modeling technologies will not only aid in the analysis of geological reservoirs and basins in the Oil & Gas sector to reduce emissions but will also contribute to advancements in geological carbon storage.
SLB is a global technology company focused on driving energy innovation for a balanced planet, with a presence in over 100 countries. TotalEnergies, a global integrated energy company, produces and markets a wide range of energies and is active in approximately 120 countries, placing sustainability at the core of its strategy.
This news article is based on a press release statement.
In other recent news, Schlumberger Limited (NYSE:SLB) has been making significant strides in the energy sector. The company recently secured a front-end engineering design (FEED) contract from Equinor for an electric Subsea Production Systems project at the Fram Sør field, offshore Norway. The project aims to advance the global adoption of electric subsea technology, enhancing operational efficiency and reducing emissions.
SLB has also been active in the mergers and acquisitions arena, with a notable $8.2 billion acquisition of CHX. This move has been positively received by analysts from RBC (TSX:RY) Capital Markets, who see it as part of a larger consolidation trend within the energy sector.
From an analyst perspective, Citi has adjusted its price target for SLB to $62, maintaining a Buy rating. Similarly, Benchmark has sustained a Buy rating on SLB shares, citing the stock's low valuation as a potential catalyst for a rebound. Barclays (LON:BARC) also maintains confidence in SLB's future performance, keeping an overweight rating with a price target of $70.00.
InvestingPro Insights
SLB (NYSE: SLB) is embracing the future with its latest partnership with TotalEnergies, leveraging its technological prowess and commitment to innovation. As they undertake this significant digital transformation, let's look at some key metrics and insights from InvestingPro that could be pertinent to investors following this development.
InvestingPro Data highlights SLB's robust market presence with a Market Cap of $66.58 billion USD. The company's commitment to shareholder returns is evidenced by its impressive track record of maintaining dividend payments for 54 consecutive years, a testament to its financial stability and investor-friendly approach. Moreover, with a P/E Ratio of 15.3, which adjusts slightly to 15.18 for the last twelve months as of Q1 2024, SLB is trading at a multiple that suggests investor confidence in its earnings potential.
InvestingPro Tips indicate that SLB has been able to keep price volatility low, which can be appealing for investors looking for stable investment opportunities in the energy sector. Additionally, analysts predict that the company will be profitable this year, which is consistent with its profitability over the last twelve months.
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With a total of seven InvestingPro Tips available, investors can gain a comprehensive view of SLB's strengths and areas for improvement, which could be crucial in making informed investment decisions, especially as the company embarks on this transformative digital partnership with TotalEnergies.
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