Schlumberger sees LatAm as subsea market driver

Oilfield services firm Schlumberger expects Latin America to drive near-term growth in its global subsea business as operators accelerate plans to tap the region's offshore potential, CEO Olivier Le Peuch said on Friday. 

Among the leading deepwater markets is Brazil, where Schlumberger signed contracts with Petrobras and Enauta for developments in the Campos and Santos basins, respectively, during the third quarter. 

"We're seeing very positive trends in Brazil, Norway and other Latin American basins," Le Peuch told analysts during a quarterly earnings call. 

"The appraisal of Colombian offshore gas and [opportunities in] Suriname will be complemented by further activity in Africa and Asia. The number of [subsea] trees is growing visibly ... and this is setting market conditions to support higher prices," he added. 

The comments came after Schlumberger reported Q3 revenue from its Latin American operations of US$1.51bn, up 14% sequentially, amid higher well construction activity, increased drilling and rising prices. Global revenue climbed 10% compared to the previous quarter to US$7.48bn. 

"Increased stimulation and drilling activity in Argentina as well as higher production systems sales in Brazil ... contributed to the year-on-year revenue growth," it said. 

The Houston-based company posted third quarter net income of US$907mn, the highest since 2015. 

Le Peuch predicted the current demand cycle would continue in 2023, led by offshore developments in the Middle East, a "constrained and structurally imbalanced" global gas market and a continued fall in breakeven prices for offshore projects.