Shares of SLB Ltd. (SLB) climbed more than 1% on Monday after the company announced that its OneSubsea joint venture had secured a major engineering, procurement and construction (EPC) contract from Eni SpA (E) for Phase 3 of the deepwater Baleine project off the coast of Côte d'Ivoire.
The deal is a big one. OneSubsea will supply complete subsea production systems for 13 wells, including subsea trees, umbilicals, manifolds, multiphase flowmeters and control systems. The scope also covers installation, commissioning and life-of-field support. It's the kind of integrated contract that oilfield services companies love — it locks in revenue for years and deepens the relationship with the client.
“Baleine Phase 3 brings together scale and execution certainty,” said Mads Hjelmeland, CEO of SLB OneSubsea. “Through our subsea production system technology and by leveraging our established local presence, we are supporting Eni’s efforts to advance a complex, deepwater project efficiently while contributing to the long-term development of offshore resources in Côte d’Ivoire.”
SLB said the project will be executed through its established local presence in Côte d'Ivoire, which should help with efficient delivery across the project's life cycle. That local footprint is a competitive advantage — it means fewer logistics headaches and faster decision-making.
The stock's move Monday was notable because it came on a day when the broader market was in the red. The Nasdaq fell 1.10%, and the S&P 500 slipped 0.35%. But energy was the best-performing sector as investors rotated out of tech and into commodity-linked stocks. SLB was a beneficiary of that shift.
Technically, SLB is in an interesting spot. It traded at $48.35, very close to its 20-day simple moving average of $48.20. That level could act as near-term support. But the broader trend is still mixed. The stock is 8.9% below its 50-day moving average of $52.85 and 7% below its 100-day moving average of $51.73. Those levels could become resistance if the rally continues.
On the bright side, momentum is improving. The MACD is above its signal line, suggesting selling pressure has eased. The stock also trades 5.2% above its 200-day moving average of $45.75, and the 50-day moving average remains above the 200-day moving average after a bullish golden cross formed back in December 2025. That's a longer-term positive signal.
Looking ahead, the next resistance level is around $57.50, while support sits near $44.50. For now, the contract win gives investors a fundamental reason to own the stock, and the technical picture is starting to look a bit more constructive.
