SLB Boosts Middle East Growth With Seven-Year Kuwait Innovation Deal

SLB N.V. SLB has secured a seven-year contract from Kuwait Oil Company (KOC) under the Ahmadi Innovation Valley (AIV) initiative, strengthening its long-term growth prospects in the Middle East. The agreement makes SLB the first contracted technology partner under KOC's flagship innovation program…

SLB N.V. SLB has secured a seven-year contract from Kuwait Oil Company (KOC) under the Ahmadi Innovation Valley (AIV) initiative, strengthening its long-term growth prospects in the Middle East. The agreement makes SLB the first contracted technology partner under KOC's flagship innovation program, reinforcing the company's leadership in digital energy technologies and advanced oilfield services.

Under the contract, SLB will collaborate with KOC to develop, evaluate and deploy technologies across artificial intelligence (AI), Industrial Internet of Things (IIoT), reservoir technologies, production optimization, water management and energy transition initiatives.

The award expands a relationship spanning more than 85 years and provides SLB with a long-duration revenue opportunity while strengthening its presence in one of the world's largest oil-producing regions. Beyond technology deployment, SLB plans to establish a dedicated Ahmadi Innovation Valley facility in Kuwait, with construction beginning in 2026 and operations expected to commence in 2028. The new center will support applied research, pilot projects, technology management and knowledge transfer, creating opportunities for future service contracts and strengthening customer relationships.

The contract reflects SLB's focus on growing advanced digital and technology solutions, which generate higher profit margins than standard oilfield services. The agreement also positions the company to benefit from the growing demand for AI-enabled field optimization and automation as energy companies modernize their operations. By becoming KOC's inaugural innovation partner, SLB enhances its Middle East footprint while generating additional cash flow, strengthening its business model and increasing investor appeal.

SLB currently carries a Zacks Rank #3 (Hold).

The business models of players providing equipment and services to energy companies including SLB are dependent on capital spending by the upstream players. Therefore, Weatherford International plc WFRD, which provides equipment and services to energy companies is benefiting from energy players such as Vista Energy, S.A.B. de C.V. VIST and Aker BP ASA AKRBY. Both these companies have upstream operations and are enjoying a favorable pricing environment, with Brent crude oil prices trading above the $70-per-barrel mark, according to oilprice.com.

WFRD, VIST and AKRBY carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Weatherford leverages its equipment and digital solutions to support oil and gas wells across 75 countries throughout their lifecycles. In the first quarter of 2026, WFRD achieved a major milestone in the U.K. sector by completing the initial deployment of its AlphaV casing system in Liverpool Bay. This historic whipstock installation in the Irish Sea lowered operational costs and delivered significant time savings for the project.

Vista operates 257,000 net acres in Argentina’s prolific Vaca Muerta basin, achieving a 67% year-over-year production growth to 134,741 barrels of oil equivalent per day (Boe/d) in the first quarter of 2026. Supported by this strong performance, VIST increased its full-year production guidance to 143,000 Boe/d.

Aker BP operates key Norwegian Continental Shelf (NCS) hubs like Alvheim, Edvard Grieg/Ivar Aasen, Valhall, Skarv and Ula, and holds a stake in Johan Sverdrup. AKRBY has strengthened its NCS portfolio by securing a 19% interest in high-potential exploration licenses, including Grosbeak, Swisher, Toppand and Rover.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report