SLB’s Big Merger Redraws the Middle East Energy Map

SLB’s ChampionX deal sets stage for tougher competition and faster innovation in Gulf energy.

22 Sep 2025

SLB has completed its $7.8bn acquisition of ChampionX, combining its global footprint with the US group’s oilfield chemical expertise in a move expected to reshape the Middle East’s energy services sector.

The merger, finalised on July 16, positions SLB to deliver integrated packages that include chemical solutions, artificial lift systems and digital monitoring. The company said this would help producers in Saudi Arabia and the UAE reduce equipment downtime, extend asset life and meet environmental goals as they expand investment in gas projects and cleaner energy initiatives.

“This is about more than scale,” said Olivier Le Peuch, SLB chief executive, when announcing the deal. “It is about delivering integrated solutions that improve performance and sustainability.”

Industry analysts said the transaction would intensify competition with Halliburton and Baker Hughes, which are also seeking to bundle services for national oil companies in the region. Smaller firms may remain competitive through niche offerings and quicker delivery, but the emphasis on innovation is likely to increase.

The deal comes as Middle Eastern governments continue to press suppliers to expand local production and jobs, raising execution risks for SLB as it integrates two global businesses. Failure to step up regional investment could leave room for rivals to capture market share.

The tie-up reflects a broader consolidation trend across the oilfield services industry, as companies seek both scale and technological depth to meet shifting energy demands. For the Middle East, the SLB-ChampionX merger signals a more competitive phase in the sector, where large service groups are expected to play a central role in advancing both output and sustainability targets.