SLB has announced that its OneSubsea joint venture has been awarded a multi-well, integrated engineering, production, and construction (EPC) contract by China National Offshore Oil Corporation (CNOOC). The contract encompasses 20 wells and covers the delivery of integrated subsea production systems for the deepwater Kaiping 18-1 field development in the South China Sea.

Contract Scope and Technical Specifications

Under the contract, SLB OneSubsea will deliver standardized subsea production technology that includes dual electric submersible pump (ESP), gas lift and gas injection horizontal trees, manifolds, connectors, and control systems. The company will also provide installation and commissioning support as part of the comprehensive agreement.

The contract was announced on March 17, 2026, representing a significant subsea development project in the region. The Kaiping 18-1 field development is located in deepwater areas of the South China Sea, requiring specialized subsea production systems to extract resources from the ocean floor.

Standardized Technology Approach

SLB OneSubsea's approach centers on standardized and simplified subsea architecture designed to reduce system complexity and drive operational efficiencies. The standardized subsea systems are also intended to support future field expansions, providing scalability for the development project.

Mads Hjelmeland, chief executive officer of SLB OneSubsea, commented on the contract award, stating: "This award highlights the continued adoption of our standardized subsea systems, and the efficiency gains they can deliver on complex multi well projects. By applying proven designs and working closely with regional partners, we can help streamline execution and support effective delivery for CNOOC."

Execution Strategy and Regional Collaboration

The integrated delivery model employed by SLB OneSubsea is designed to compress installation schedules and minimize offshore vessel requirements. This approach aims to enhance project efficiency and reduce operational complexity during the installation phase.

Project execution will leverage collaboration with regional partners to support in-country manufacturing and supply-chain capability. This collaborative approach is intended to contribute to efficient delivery while providing continuity for future subsea developments in the region.

Industry Impact

The contract represents the continued adoption of standardized subsea systems in complex multi-well projects. The standardized approach allows for proven designs to be applied across multiple wells, potentially streamlining the execution process for large-scale subsea developments.

The 20-well project demonstrates the scale of subsea development activities in the South China Sea region, with CNOOC continuing to advance deepwater exploration and production capabilities. The integrated EPC contract structure combines engineering, production, and construction elements under a single agreement, providing a comprehensive approach to subsea system delivery.

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