Halliburton Partners With Shell for ROCS Deepwater Solution

Halliburton HAL, a Houston, TX-based oil and gas equipment and services company, has significantly advanced deepwater operations with the introduction of its Remote Operated Controls Systems (“ROCS”) technology, signing a strategic framework agreement with Shell plc SHEL for umbilical-less tubing hanger installation and retrieval services. This collaboration highlights a paradigm shift in the offshore energy sector, offering a transformative solution that enhances both the safety and efficiency of complex deepwater operations.

With the recent success of ROCS in the Gulf of America, the technology is set to revolutionize how oil and gas companies approach well-completion challenges in harsh and remote deepwater environments.

Game-Changer in Deepwater Operations

The ROCS technology, developed by Optime, a Halliburton service, has garnered significant attention for its ability to outperform traditional hydraulic systems used in deepwater well-completion procedures. Unlike conventional systems that rely heavily on hydraulic umbilicals, ROCS is a compact and umbilical-less control system, offering a safer and more efficient alternative. By eliminating the need for bulky umbilical connections, ROCS reduces surface pressure risks, decreases personnel exposure to hazardous environments and streamlines operations, making it an ideal solution for operators working in challenging offshore locations.

The success of ROCS is particularly evident in its recent achievement of setting a global benchmark with the installation of a tubing hanger at a staggering 8,458 feet — marking the deepest umbilical-less operation in history. Deployed across various regions, including the Norwegian Continental Shelf, West Africa and the Gulf of America, ROCS has demonstrated its reliability and effectiveness in the most demanding environments.

Efficiency and Safety: The Hallmarks of ROCS Technology

One of the key features of ROCS technology is its ability to accelerate running-in and pulling-out-of-hole procedures, significantly improving the speed and efficiency of well-completion operations. Compared with traditional methods, ROCS reduces deck operations by up to 75%, offering a more streamlined approach to well construction. This reduction in time and resources not only leads to cost savings but also enhances the overall safety of the operation by minimizing exposure to potential risks on the rig.

Furthermore, ROCS improves downhole line tests, ensuring more accurate results and enabling operators to make quicker and more informed decisions. By utilizing remote-operated controls, operators can perform complex operations without the need for extensive manual intervention, thereby reducing the likelihood of human error and enhancing operational safety.

Proven Performance of ROCS in Complex Deepwater Environments

ROCS has been deployed in a variety of challenging deepwater environments, demonstrating consistent performance and reliability. The technology's adaptability to different regions, such as the Norwegian Continental Shelf, West Africa and the Gulf of America, underscores its versatility and robustness. It has proven effective in both shallow and ultra-deepwater wells, providing operators with a flexible and scalable solution to meet the demands of diverse offshore projects.

In the Gulf of America, the successful completion of a three-well technology phase highlighted ROCS' potential to deliver faster, safer and more cost-effective well-completion solutions. This successful phase of testing not only validated ROCS as a viable alternative to traditional hydraulic methods but also showcased its ability to perform in deepwater conditions where other technologies have often struggled.

ROCS: The Future of Deepwater Well-Completion

As deepwater exploration and production continue to evolve, the demand for more efficient, safe and reliable technologies is greater than ever. ROCS, with its proven performance and cutting-edge capabilities, is well-positioned to meet these needs. The agreement between Halliburton and Shell marks a significant milestone in the adoption of ROCS technology across the global offshore drilling fleet. With the speed, precision and cost-effectiveness, ROCS is not just an innovation; it is the future of well-completion in complex environments.

As the industry moves toward more sustainable and efficient energy solutions, ROCS represents a key step in reshaping how oil and gas companies approach well construction and completion in deepwater environments. Its proven track record, coupled with the ability to improve both operational efficiency and safety, makes ROCS a vital tool for modern offshore energy projects.

Conclusion: The Impact of ROCS on the Offshore Industry

Halliburton’s strategic partnership with a London-based integrated oil and gas company to implement ROCS technology underscores the growing shift toward more efficient, cost-effective and safer operations in the offshore drilling sector. The benefits of ROCS — ranging from reduced deck operations to improved downhole line testing — make it an invaluable asset for operators working in complex, deepwater environments. As global rig fleets continue to adopt this advanced technology, ROCS is poised to become the standard in deepwater well-completion operations, setting a new benchmark for safety, efficiency and reliability in the offshore energy industry.

HAL's Zacks Rank & Key Picks

Currently, HAL and SHEL have a Zacks Rank #3 (Hold) each.

Investors interested in the energy sector might look at some better-ranked stocks like Canadian Natural Resources Limited CNQ and Cheniere Energy LNG, currently sporting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Natural is one of Canada's largest independent oil and natural gas producers, with operations spanning exploration, development and production across North America, the North Sea and Offshore Africa. The company focuses on a diversified portfolio of assets, including oil sands, conventional crude oil, natural gas and thermal in-situ operations. Canadian Natural is valued at $65.74 billion.  

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