SLB OneSubsea Wins EPC Contract for Equinor's Fram Sor Project

SLB SLB, through its OneSubsea joint venture, has been awarded a major engineering, procurement, and construction (EPC) contract by Equinor ASA EQNR for the Fram Sør field development offshore Norway. The project marks a milestone in subsea electrification, with the deployment of the industry’s first large-scale, all-electric subsea production system.

Following a year-long Front-End Engineering Design (FEED) phase, carried out jointly with Equinor, the award covers the delivery of four subsea templates and 12 all-electric subsea trees. By eliminating the need for hydraulic fluid from the host platform, the system will minimize topside modifications, reduce complexity and free up additional space for potential expansion projects.

Mads Hjelmeland, CEO of SLB OneSubsea, emphasized that the Fram Sør project represents a breakthrough for the subsea industry. As the first large-scale all-electric subsea production system, it demonstrates how electrified solutions can significantly reduce topside requirements, enable large-scale tiebacks, and unlock additional marginal resources, thanks to their smaller footprint and streamlined operations.

The Fram Sør development will be tied back to the Troll C platform in the North Sea, which benefits from power supplied via the Norwegian mainland. This setup provides production with ultra-low emissions, while enhancing energy security for Europe through continued supplies from the Norwegian continental shelf.

The EPC contract remains subject to regulatory approval of Equinor’s Plan for Development and Operations. Once sanctioned, Fram Sør is expected to serve as a blueprint for future low-emission, electrified subsea tiebacks, reinforcing SLB OneSubsea’s position as a technology leader in subsea production.

SLB’s Zacks Rank and Key Picks

SLB currently carries a Zacks Rank #5 (Strong Sell).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation AM and Precision Drilling Corporation PDS, both carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.

Precision Drilling is an oilfield services company. The company provides contract drilling, well servicing and strategic support services to the oil and gas industry in North America and internationally. It provides land drilling, directional drilling, turnkey drilling, camp and catering services, and procures and distributes oilfield supplies.

PDS’ earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 977.7%. The Zacks Consensus Estimate for 2025 earnings indicates a 14.2% year-over-year decline.

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This article originally published on Zacks Investment Research (zacks.com).

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