Halliburton CCUS Strategy, 4 Mtpa NEP Project with BP, $1 B Capex Plan and 2 Major Agreements (2025-2026)

Halliburton CCUS Commercial Projects Show Shift to Subsurface Service Specialization

Halliburton‘s 2025 commercial strategy solidifies its pivot from a traditional oilfield service provider to a specialized enabler for the Carbon Capture, Utilization, and Storage (CCUS) industry, focusing exclusively on the high-margin, technically complex subsurface storage segment where its core competencies create a durable competitive advantage.

From Broad O&G Services to Focused CCUS Enablement

By concentrating on its established expertise, Halliburton is strategically positioning itself as an indispensable service partner rather than a capital-intensive asset owner. This model leverages decades of geological, drilling, and reservoir management experience to de-risk projects for operators.

• In the period before 2025, Halliburton’s CCUS involvement was largely exploratory and part of a broader energy transition portfolio. The company provided services on a project-by-project basis without a clearly articulated, dedicated strategic focus on the subsurface storage market.
• The year 2025 marked a definitive shift, validated by a major contract award from the Northern Endurance Partnership (NEP). This agreement moves Halliburton beyond general services to providing specific, critical path solutions like well completions and downhole monitoring for a world-class carbon storage hub.
• This approach avoids direct competition with pure-play capture technology developers and instead positions Halliburton as a crucial collaborator. It monetizes the most technically challenging part of the value chain: ensuring CO 2 stays permanently stored underground.

De-Risking Projects for Supermajors

The company’s 2025 engagements demonstrate that energy supermajors and new ventures alike require Halliburton’s specialized subsurface expertise to achieve project bankability and operational success.

• The NEP project partnership with a consortium including BP, Equinor, and Total Energies for a 4 million tonnes per annum (Mtpa) storage facility validates the industry’s confidence in Halliburton‘s technical capabilities.
• Similarly, the March 2025 collaboration with the In Capture joint venture in Australia for the G-15-AP CCS project highlights demand for its upfront site characterization and technical assessment services, which are vital for project viability.
• By acting as the dedicated subsurface engineering expert, Halliburton allows operators to focus on their own core competencies while mitigating the immense geological and technical risks associated with large-scale CO 2 injection and storage.

$1 B Capex for 2026, Halliburton Financial Strategy for CCUS Growth

Halliburton is executing a capital-efficient expansion into CCUS, underscored by a planned 30% reduction in 2026 capital spending to $1 billion while securing high-value contracts that support profitability without the high CAPEX of facility ownership.

Capital Discipline Amidst Expansion

The company’s financial posture reflects a deliberate strategy to grow its CCUS business through a service-oriented model, avoiding the heavy balance sheet commitments of asset ownership.

• The decision to cut 2026 capital spending to $1 billion, announced in October 2025, is a clear signal of its commitment to a capital-light model. This financial discipline allows the company to pursue growth in new energy verticals without taking on the development risk of capture and sequestration facilities.
• This strategy contrasts sharply with vertically integrated models, freeing up capital and resources to focus on technology development and service delivery where Halliburton holds a distinct advantage.

Halliburton’s Profitability in the Transition

The company’s financial performance in 2025 demonstrates that its pivot toward specialized services can support profitability during the energy transition.

• Halliburton announced a net income of $18 million for the third quarter of 2025, confirming its ability to maintain financial stability while investing in the CCUS market.
• This financial model is designed to monetize its deep, existing expertise in subsurface engineering, generating revenue from high-margin services rather than making speculative investments in nascent capture technologies.

Table: Halliburton Financial and Strategic CCUS Signals (2025)

Halliburton 2 Major CCUS Partnerships with BP and In Capture (2025)

In 2025, Halliburton secured its role as a critical technical partner in the global CCUS ecosystem through two cornerstone agreements in the UK and Australia, validating its strategy of collaborating with energy majors and new ventures on large-scale storage projects.

Northern Endurance Partnership Project

The NEP contract places Halliburton at the center of one of Europe’s most significant decarbonization projects, highlighting its selection by industry leaders for a complex offshore storage initiative.

• In August 2025, Halliburton was awarded a contract by the NEP consortium, which includes BP, Equinor, and Total Energies, for work on a pioneering CCS project in the UK’s Southern North Sea.
• The scope of work includes the delivery of completions, liner hangers, and downhole monitoring solutions for the injection and storage of up to 4 million tonnes of CO 2 per annum. This win came alongside an award to competitor SLB for different services, underscoring the scale of these projects.

In Capture Joint Venture Alliance

This Australian collaboration showcases Halliburton‘s ability to engage early in the project lifecycle, providing essential site selection and characterization services that are fundamental to project success.

• Halliburton entered a collaboration agreement in March 2025 with the In Capture joint venture to support the commercial-scale G-15-AP CCS project in Australia.
• The work involves providing technical assessment and subsurface analysis to identify and characterize suitable geological formations for permanent CO 2 storage, demonstrating its global reach in the CCUS market.

Table: Halliburton 2025 Strategic CCUS Partnerships

UK and Australia, Halliburton’s Strategic Geographic Focus for CCUS

Halliburton‘s 2025 CCUS activities are concentrated in regions with strong regulatory support and established energy infrastructure, specifically the UK and Australia, indicating a strategy to target mature markets ready for large-scale deployment.

United Kingdom as a Core Market

The UK’s ambitious decarbonization targets and favorable geology make it a primary market for Halliburton‘s subsurface service model.

• Prior to 2025, much of the CCUS activity in the UK was in planning and policy development phases. The award of the NEP contract in 2025 represents a shift to concrete execution, placing Halliburton at the center of the UK’s industrial decarbonization strategy.
• The company is leveraging the North Sea’s extensive existing oil and gas infrastructure and well-understood geological formations, allowing for a more rapid and lower-risk deployment of carbon storage solutions compared to frontier regions.

Australian Expansion

Halliburton‘s entry into the Australian market signals its intent to capture opportunities in the Asia-Pacific region, which is expected to see significant growth in CCUS.

• The partnership on the G-15-AP project in 2025 marks a significant expansion beyond its traditional North American and European markets for CCUS services. This move diversifies its geographic footprint.
• This engagement capitalizes on Australia’s strategic goal to become a regional leader in carbon management services, supported by abundant geological storage capacity and government initiatives.

Post-Combustion Captures 50% of Growing CCS Market
The Global Carbon Capture and Storage (CCS) market is valued at $6.6 billion in 2025, with post-combustion capture dominating with a 50.0% technology share. The market is projected to grow at a robust 10.6% CAGR from 2026 to 2035.

Maturity of Post-Combustion Key to Immediate Decarbonization
Post-combustion’s dominant share underscores its mature and widely applicable nature for decarbonizing existing industrial assets and power generation. This indicates a high-priority segment for immediate climate action and substantial investment, reflecting its capacity for rapid deployment.

(Source: market.us — via Carbon Capture, Utilization, and Storage Market Report 2025-2030 [347 Pages & 317 Tables])

Halliburton’s Commercially Deployed CCUS Technologies

Halliburton is deploying a suite of commercially ready and adapted technologies for CCUS, focusing on well integrity, operational efficiency, and monitoring to solve specific engineering challenges associated with long-term CO 2 sequestration.

Well Integrity and Completion Solutions

The company is applying its proven oil and gas technologies to the unique demands of CO 2 injection wells, ensuring long-term safety and containment.

• The deployment of digital technologies like its LOGIX™ cementing systems in 2025 illustrates a direct focus on ensuring long-term wellbore integrity. This is a critical risk factor for permanent CO 2 storage and a key value proposition for operators.
• The company has also demonstrated success with its engineered completion fluids. In one CCUS project, its solution enabled the successful injection of over 21, 600 bbl of brine, improving operational efficiency and reducing waste transportation costs.

Cost Reduction and Future Tech

While focused on services, Halliburton is also advancing technologies that lower the overall cost of CCUS, reinforcing its position as a comprehensive solutions provider.

• In 2025, the company highlighted a new carbon capture technology with the potential to reduce costs by up to 50% compared to existing methods. This indicates an ambition to provide enabling technologies across the value chain, likely through licensing or specialized equipment sales.
• This portfolio of specialized technology moves Halliburton beyond simply adapting old tools. It is creating specific, value-added solutions that address the primary barriers to CCUS adoption: cost and long-term storage security.

SWOT Analysis, Halliburton CCUS Strategy and Market Position

Halliburton‘s CCUS strategy capitalizes on its deep subsurface expertise and established industry relationships, but it faces competition from other major service companies and potential risks from project delays or shifts in regulatory support.

• The analysis shows that Halliburton‘s strengths are firmly rooted in its core competencies and a capital-light service model, which were validated by major contract wins in 2025.
• Its primary weakness is a structural dependency on the project pipelines and final investment decisions of other companies, which exposes it to market volatility.
• The key opportunity lies in the explosive growth projected for the CCUS market, where Halliburton is establishing a first-mover advantage in the critical subsurface services segment.
• Threats are centered on direct competition from peers like SLB, which is also securing major contracts, and the macroeconomic and political risks inherent in large, long-cycle infrastructure projects.

Table: SWOT Analysis for Halliburton Carbon Capture Initiatives for 2025: Key Projects, Strategies and Market Impact

CCS Market Surges to $32B by 2035, Driven by Capture
The Global Carbon Capture and Sequestration (CCS) market is projected to skyrocket from $6.9 billion in 2025 to $32.0 billion by 2035, growing at a robust 16.6% CAGR. Capture remains the dominant and fastest-growing segment, underlining foundational investment needs.

Critical Investment Window for Integrated CCS Value Chain
This explosive growth signifies a prime opportunity for early movers, with significant capital flowing into capture technologies. The expanding demand for Utilization, Transportation, and Storage services reveals the urgent need for scalable, end-to-end CCS solutions to effectively manage carbon and create new economic value streams.

(Source: market.us — via Halliburton Carbon Capture 2026, 1 New Product, bp Deal)

Scenario Modelling for Halliburton, Will the NEP Project Validate the Service Model?

The critical factor for Halliburton‘s CCUS success in the next 18-24 months is the successful execution of its scope on cornerstone projects like NEP, which will validate its service-led model and determine its ability to secure a dominant share of the growing subsurface services market.

If Halliburton Delivers on NEP

Successful project execution on a major international stage would serve as the ultimate validation of Halliburton‘s strategy and technical capabilities.

• If Halliburton‘s well completion and monitoring work on the Northern Endurance Partnership project proceeds on schedule and within budget, watch for a series of similar contract announcements for other large-scale hubs being planned in North America and Southeast Asia.
• This could be happening if the company’s new energy division reports sequential revenue growth through 2026, driven by an expanding backlog of CCUS service contracts. This would signal that the market has fully endorsed its capital-light, service-focused strategy.

If Project Timelines Slip

Delays in flagship projects, whether due to technical, regulatory, or financial reasons, could slow the momentum of Halliburton‘s CCUS business.

• Conversely, if major projects like NEP or the G-15-AP face significant delays, watch for Halliburton to potentially highlight growth in its traditional business lines while de-emphasizing the near-term revenue potential of CCUS in investor communications.
• This could be happening if there are no new major CCUS service contract announcements in the next 12 to 18 months, suggesting that the market for these large-scale, specialized services is developing more slowly than projected.

The questions your competitors are already asking

This report covers one angle of Halliburton’s commercial trajectory in carbon management. The questions that matter most depend on your work.

• SLB carbon storage strategy and projects
• New large scale carbon storage projects North America
• Supermajor investment in carbon storage infrastructure
• Carbon storage well integrity and monitoring technology

This report does not answer these. Enki Brief Pro does.

Your question, your angle, your framework. SWOT, PESTL, scenario modelling. The same niche depth, built around the decision your work actually depends on.

Run your first brief in Enki Brief Pro