Houston, Texas-based Halliburton (HAL) announced that it has received several contracts from Statoil ASA (STO) to extend services to two high-pressure/high-temperature (HP/HT) Gudrun and Brynhild fields in the offshore region of Norway. The value of these long-term contracts is estimated to go beyond $200 million.
The scope of the deals involve supply of directional drilling, logging-while-drilling, cementing, drilling fluids along with completion equipment and services by Halliburton at the fields. The exploration activities on the acreage are expected to commence in the third quarter of 2011.
Statoil acts as the operator of the Gudrun field and expects Halliburton’s expertise in dealing with HP/HT technology to result in development of the aforesaid field. The Gudrun oil and natural gas play is expected to come online in the first quarter of 2014.
At Halliburton, management believes its proficiency in operating under severe conditions coupled with a strong legacy of performing HP/HT drilling assures its reliability and position in the industry. In recent times, Halliburton was awarded its first ultra HP/HT drilling venture in Asia.
(Read the full report at: Halliburton Wins Supply Contracts)
Halliburton is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial and government sectors. The company operates under two main segments: Completion and Production, and Drilling and Evaluation.
We believe that Halliburton enjoys a leading position in the global oilfield services market given its broad and technologically complex product and service offerings as well as a robust financial profile.
However, we maintain a long-term Neutral rating on the stock considering the intense competition in the market the company operates, depressed natural gas prices and the expected curtailment in incremental drilling projects. Halliburton currently retains a Zacks #3 Rank (short-term Hold rating).
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