Al Qahtani and Kibsgaard (left) at the ground-breaking ceremony

Al Qahtani and Kibsgaard (left) at the ground-breaking ceremony

Schlumberger to set up new plant

The new manufacturing plant will be spread across 500,000-sq m in Dhahran and will manufacture products for drilling, exploration and production, as well as midstream

February 2018

Schlumberger, one of the world’s leading oil services companies, has signed a deal with state oil giant Saudi Aramco to develop a hitech industrial manufacturing centre within the King Salman Energy Park at Dhahran in Saudi Arabia.

The announcement was made at a ground-breaking ceremony at the King Salman Energy Park, being developed and operated by Saudi Aramco.

Schlumberger, which is a key anchor tenant at the park, said the new manufacturing plant will come up over a 500,000-sq-m area of land allocated for energy-related industries.

The new unit will manufacture products for drilling, exploration and production, as well as midstream, it stated.

Welcoming the move, Mohammed Al Qahtani, the senior vice-president (Upstream) at Saudi Aramco, said: “Schlumberger is the ‘first mover’ to come onto the King Salman Energy Park, and we extend our warmest welcome. This initiative underlines Saudi Arabia’s key position as a regional and global energy industry hub.”

“Significantly, Schlumberger is bringing major manufacturing capacity to the kingdom, with the potential to develop export markets. This presence will attract additional tenants to the park, bringing the jobs and investment that are crucial to both Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) development programme, and the Kingdom’s Vision 2030,” he stated.

The first phase of the facility will be completed in the second quarter of 2018, which will bring Schlumberger land rig manufacturing to the kingdom.

Paal Kibsgaard, the chairman and CEO of Schlumberger, said: “The new industrial manufacturing centre will collocate our upstream and midstream manufacturing in the kingdom and complements the footprint Schlumberger has built over many years.”

“We believe our commitment puts Schlumberger in a position to attract the best local talent, to grow within the kingdom, and to export within the region,” he added.



Meanwhile, Saudi Aramco has awarded Schlumberger two lump sum contracts for drilling rigs and services for its oil and gas wells.

Under the contracts, Schlumberger Integrated Drilling Services (IDS) will provide drilling rigs and services for up to 146 gas wells and up to 128 oil wells over three years. 

The contracts are designed to provide an integrated service to deliver wells, which will increase efficiency levels and improve cost-effectiveness, while maintaining the highest safety standards, it stated. In developing the agreements, Saudi Aramco and Schlumberger focused on enhanced processes and the latest technology to ensure safe and efficient operations at all times, remarked Qahtani after signing the deal with Kibsgaard on the sidelines of Saudi Aramco’s IKTVA Forum held in Khobar, Saudi Arabia.

Qahtani pointed out that both Saudi Aramco and Schlumberger were key partners who, under these contracts, will be able to bring innovative technologies to the field, and deploy them in its large-scale operations.

“We have a great history of success with Schlumberger throughout our 75 year partnership in Saudi Arabia, and we have now set the scene for even greater achievements in the future,” he stated.       

On the contract win Kibsgaard said: “Schlumberger is proud and humble to be trusted with delivering lump sum gas and oil wells within the kingdom.”

“Through our committed teams, advanced technology and Integrated Drilling Services we are looking forward to working in close collaboration with Saudi Aramco to successfully deliver these oil and gas wells,” he added.

More Stories