Halliburton CCUS Projects, Northern Endurance Partnership Contract, $1.1 B CAPEX, and 5+ Key Agreements (2021-2026)

CCUS Commercial Adoption, Halliburton’s Pivot from Pilots to Major Contracts

Halliburton has successfully transitioned its carbon capture strategy from foundational exploration in 2021-2024 to securing major commercial contracts and deploying specialized technology from 2025 onwards, validating its strategic pivot into a key service provider for large-scale decarbonization projects.

Halliburton’s Foundational CCUS Strategy (2021-2024)

Between 2021 and 2024, Halliburton laid the groundwork for its energy transition business by establishing internal structures and testing the market with targeted collaborations. This phase was characterized by building capabilities rather than booking large-scale revenue. The company launched its dedicated Low Carbon Solutions business unit to focus its expertise on Carbon Capture, Utilization, and Storage (CCUS), geothermal, and hydrogen storage. During this period, activities included strategic, smaller-scale partnerships, such as the 2022 subsurface study with Energean to evaluate CCS potential in Greece. Concurrently, Halliburton Labs acted as an incubator, bringing in clean energy startups like Airovation Technologies in December 2023 to nurture a pipeline of innovative carbon capture technology. These early moves demonstrated a calculated approach to entering the market by leveraging core competencies and fostering external innovation.

Securing Commercial Scale with Halliburton (2025-2026)

The period from 2025 marked a distinct shift to commercial execution, where the foundational work began to translate into significant, tangible contracts. The most critical validation of this strategy came in August 2025, when Halliburton was awarded a contract by the Northern Endurance Partnership, a consortium including BP, Equinor, and Total Energies, for the UK’s East Coast Cluster CCS project. This agreement, focused on monitoring and verification services ahead of a planned 2027 first injection, moved Halliburton from a potential partner to an integral service provider for one of the world’s largest decarbonization projects. This momentum was reinforced by the launch of the specialized XTR CS injection system in February 2026, a product designed specifically to enhance the reliability of CO₂ injection for CCUS projects. This move from service-based studies to providing critical hardware and securing major project roles signifies the maturation of Halliburton’s commercial strategy, a path also being navigated by competitors like Technip FMC and Weatherford.

$1.1 B CAPEX, Halliburton’s Funding for Low-Carbon Growth

Halliburton is directing significant capital towards its low-carbon business, evolving from targeted venture partnerships to substantial internal capital expenditures and dedicated R&D facilities to build out its new energy verticals.

Halliburton’s S$35 M NEX Lab Investment

A key pillar of this investment strategy is the development of next-generation technologies. In January 2026, Halliburton and its partner launched the NEX Lab in Singapore, backed by a joint investment of S$35 million. This facility is explicitly designed to accelerate innovation in low-carbon technologies, providing a dedicated environment for R&D that is separate from the immediate demands of the company’s traditional oil and gas business. This investment provides the physical infrastructure to develop and test the sustainable solutions and products that will support its CCUS and geothermal ambitions.

Halliburton’s 2026 Capital Expenditure Plan

The company’s broader financial commitment is evident in its 2026 capital expenditure plans. Following a $192 million CAPEX in the first quarter, Halliburton projects a total CAPEX of approximately $1.1 billion for the year. While this budget supports the entire company, executives have stated it is intended to fund both the optimization of traditional operations and the strategic expansion of its new energy ventures. This level of spending indicates that the Low Carbon Solutions unit is not a peripheral initiative but a core part of the company’s forward-looking growth strategy, receiving the financial support necessary to compete for capital-intensive projects.

Table: Halliburton Financial Commitments to Sustainability Initiatives

Halliburton 5+ Strategic Partnerships, From Diamondback to PETRONAS (2021-2026)

Halliburton’s partnership strategy has evolved from a focus on decarbonizing existing oil and gas operations to enabling large-scale, third-party low-carbon infrastructure projects, solidifying its role as a technology and services partner across the energy transition spectrum.

Decarbonizing Core Operations with Halliburton

In the earlier part of the analysis period, Halliburton’s sustainability-focused partnerships were centered on reducing the environmental footprint of its core business. A primary example is the landmark agreement with Diamondback Energy and Volta Grid in December 2024 to deploy four all-electric ZEUS™ fracturing fleets in the Permian Basin. This collaboration directly addressed Scope 1 emissions by replacing diesel-powered equipment with grid-powered electric systems, a model also pursued by peer NOV. This type of partnership was crucial for demonstrating a commitment to sustainability within its primary revenue-generating services while building operational expertise with electrified equipment.

Halliburton as a Low-Carbon Infrastructure Partner

By 2025, the nature of Halliburton’s partnerships shifted towards enabling new low-carbon energy systems. The contract with the Northern Endurance Partnership positions Halliburton as a critical technical expert for a major international CCS hub. Further, strategic collaborations with national and international energy companies, such as with PETRONAS Suriname in April 2026 for offshore asset development and with Chevron in June 2025 for intelligent hydraulic fracturing to lower carbon intensity, underscore this evolution. These agreements are not just about making legacy operations cleaner; they are about co-developing and servicing the infrastructure for a lower-carbon future, establishing Halliburton as an indispensable partner for energy majors’ transition goals.

Table: Halliburton Strategic Partnerships and Collaborations

US vs. International, Halliburton CCUS Geographic Expansion

While Halliburton’s initial decarbonization efforts were heavily concentrated in the US Permian Basin, its recent major contract wins and strategic investments signal a significant geographic expansion into key international markets like the UK and Singapore, aligning its footprint with the global development of regional carbon capture hubs.

• The company’s early sustainability wins were centered in the United States, most notably the December 2024 agreement with Diamondback Energy to deploy electric fracturing fleets in the Permian Basin. This domestic focus aligned with the immediate operational needs of its largest customer base.
• By mid-2025, the company’s strategic focus pivoted internationally. The August 2025 contract award from the Northern Endurance Partnership for the East Coast Cluster firmly established a major operational presence for its Low Carbon Solutions unit in the United Kingdom’s burgeoning CCS market.
• Expansion into Asia was solidified with the January 2026 launch of the S$35 million NEX Lab in Singapore. This move positions Halliburton within a key logistical and financial hub for the Asia-Pacific region, which is expected to see significant growth in decarbonization projects.
• The collaboration with PETRONAS Suriname announced in April 2026 further extends its reach into South America, demonstrating an ability to apply its low-carbon service offerings and expertise to support national energy companies in diverse regulatory environments.

CCUS Technology Commercialization, Halliburton’s XTR CS System

Halliburton has successfully advanced its CCUS offerings from the conceptual and assessment phase to the deployment of specialized, commercially available products, demonstrated by the launch of its XTR CS injection system designed to address specific technical challenges in large-scale CO₂ storage projects.

• In the 2021-2024 period, Halliburton’s technology strategy was focused on evaluation and incubation. This included providing subsurface assessment services for projects like Energean’s potential storage site in Greece and fostering startups like Airovation Technologies through Halliburton Labs, which were exploring novel carbon capture methods.
• The launch of the XTR CS injection system in February 2026 marks a critical inflection point, signaling a shift from service-based assessment to providing tangible, engineered products. This system is specifically designed to manage the unique challenges of CO₂ injection, such as temperature fluctuations and material integrity.
• By developing and launching a specialized product, Halliburton moves up the value chain. It provides a solution to a key technical bottleneck in CCUS project development, enhancing project reliability and performance, and creating a new, scalable revenue stream tied to the physical build-out of CCS infrastructure.
• This progression from providing studies to selling specialized hardware validates the company’s technology roadmap and demonstrates a mature understanding of the specific engineering problems that must be solved for the CCUS market to reach commercial scale.

$1.1 B CAPEX, Halliburton SWOT Analysis for Low-Carbon Initiatives

Halliburton’s strategic pivot is fundamentally supported by its world-class subsurface engineering expertise and deep-rooted client relationships, creating significant opportunities in the growing CCUS market. However, the company’s success is contingent on navigating the long-term, capital-intensive nature of these new energy projects while managing competition from other service providers who are also pursuing a similar strategic shift.

Table: SWOT Analysis for Halliburton’s Sustainability Initiatives

Halliburton 2027 CCUS Outlook, Watch Northern Endurance Project Milestones

The single most critical indicator for Halliburton’s CCUS business over the next 18 months will be the steady, on-schedule progression of the Northern Endurance Partnership project toward its 2027 first injection milestone, as this will serve as the flagship validation of its commercial and technical capabilities at an unprecedented scale.

• If this happens: If Halliburton publicly meets its service-level objectives and technical milestones for the NEP project, it will cement its reputation as a premier service provider for large-scale CCUS. This success would provide a powerful, bankable case study to leverage in bids for other major carbon storage hubs developing in North America, Europe, and Asia.
• Watch this: Monitor quarterly earnings calls for specific updates on the Low Carbon Solutions unit’s progress, particularly any mention of the NEP project’s status or new contracts leveraging the technology and expertise deployed there. Also, track the commercial uptake of the XTR CS injection system and any new technology rollouts from the Singapore NEX Lab.
• These could be happening: A successful track record on the NEP project could lead to Halliburton securing follow-on contracts for later phases of the East Coast Cluster or similar projects by the same partners (BP, Equinor, Total Energies) in other regions. The company may also use this momentum to announce a larger, more definitive capital allocation for its low-carbon business in future fiscal years, signaling a further acceleration of its strategic pivot.

The questions your competitors are already asking

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

• TechnipFMC carbon capture contracts
• Upcoming large scale carbon storage projects
• Carbon dioxide injection technology comparison
• Oilfield service company spending on energy transition

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