Market Overview
At the close of the New Year trading session, the New York Stock Exchange delivered a modest gain, with the Dow Jones Industrial Average up 0.66 % to 48,382.39 and the S&P 500 advancing 0.19 % to 6,858.47. The Nasdaq Composite slipped marginally by 0.03 %. In the energy sector, the spotlight fell on Schlumberger N.V. (SLB), whose shares opened the year on a robust footing, breaking through key technical resistance levels on heightened volume and attracting sizable institutional purchases.
SLB’s Strategic Expansion in the Middle East
ADNOC Drilling and the Oman Deal
On January 3, 2026, ADNOC Drilling, the drilling arm of the Abu Dhabi National Oil Company, announced that it had completed the purchase of a controlling stake in a land‑rig joint venture with SLB. The transaction grants ADNOC Drilling a 50 % share of a portfolio of six rigs operating in Oman, thereby establishing a permanent on‑shore drilling base for the Gulf operator. The deal, filed with the relevant regulatory authorities, signals a deepening of the relationship between Saudi‑based oil majors and SLB’s engineering and services capabilities. For SLB, the agreement represents a continuation of its strategy to embed its technology in high‑growth markets across the Middle East, reinforcing its position as a preferred partner for national oil companies.
Aramco Contract for Saudi Unconventional Gas
A day earlier, on January 2, 2026, SLB secured a landmark contract with Saudi Aramco to develop unconventional gas resources in the kingdom. The project, described as a “landmark” by the company, will leverage SLB’s advanced acquisition and data‑processing technologies to identify and optimize gas‑rich formations. By positioning itself at the forefront of Saudi Arabia’s transition to a more diversified energy mix, SLB is poised to generate substantial revenue streams and deepen its footprint in the region’s largest oil market.
Share Performance and Investor Sentiment
SLB’s shares opened the year on a high note, driven by the twin catalysts of the Oman and Saudi contracts. The stock’s 52‑week high of $44.66 (reached on January 20, 2025) and a low of $31.11 (on April 8, 2025) provide context for the current valuation. At the close on January 1, 2026, the share price stood at $40.20, trading at a price‑earnings ratio of 14.84—well below the historical average for the sector.
The breakout was accompanied by significant institutional buying, as reported by a German market‑watcher on January 3, who noted a sharp increase in volume that “signals a return of buyers.” The technical analysis suggests that the stock has successfully breached a key resistance level, positioning it for a potential upward trajectory provided that the company continues to secure large‑scale contracts.
Broader Energy Context
While SLB’s performance has been positive, the broader energy market remains volatile. The United States’ political landscape is shaping discussions around investment in Venezuela, with President Donald Trump announcing that U.S. oil companies will invest billions to restore production in the South American country. Though not directly linked to SLB, such announcements reflect the shifting dynamics of global oil supply and the opportunities that may arise for oilfield service providers willing to navigate complex geopolitical environments.
Conclusion
Schlumberger N.V. is reinforcing its strategic presence in the Middle East through the Oman joint venture with ADNOC Drilling and the Saudi Aramco unconventional gas contract. These deals, coupled with a strong market debut and institutional confidence, suggest that SLB is well positioned to capitalize on growth opportunities in high‑value regions. Investors will likely keep a close eye on the company’s execution in these contracts and on how it navigates the broader energy transition that is reshaping the industry landscape.
