SLB Wins $1.5B Kuwait Contract; Jefferies Raises PT to $58, UBS to $61
SLB secured a $1.5 billion five-year contract from Kuwait Oil Company to design, develop and manage production at the Mutriba field. Jefferies raised its price target to $58 and UBS lifted its target to $61 while both retained Buy ratings on the stock.
1. Contract Award for Mutriba Field Development
On February 5 SLB secured a $1.5 billion award from Kuwait Oil Company covering design, development and production management of the Mutriba oil field over five years. The scope includes reservoir engineering, drilling services and integrated project management to optimize field output.
2. Analyst Price Target Increases
Jefferies raised its price target on SLB shares from $51 to $58, while UBS lifted its target from $50 to $61, both maintaining Buy ratings. Analysts cited the new Kuwait contract and broader exploration trends in Asia and the Middle East as drivers of improved visibility and cash flow.
3. Implications for SLB’s Regional Growth
The five-year deal follows SLB’s December award to service Saudi Arabia’s unconventional gas fields and marks further expansion in the Middle East. Growing upstream spending across Africa, Asia and the Gulf is expected to boost demand for SLB’s technology and integrated engineering solutions.