Oilfield services provider
Baker Hughes Inc.
) announced that it has won Norway-based
) new drilling service contract for 25 fields on the Norwegian
Continental Shelf (NCS). The two-year contract - valued at $504
million - is for integrated drilling services. The deal is with an
option for Statoil to make two extensions of two years each, though
this is not included in the estimated value of the contract.
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Per the agreement, Baker Hughes will deliver directional drilling,
measurement-while-drilling, logging-while-drilling, mud logging as
well as onshore support and drilling engineering services. The work
is expected to begin in the third quarter of 2012.
Through Baker Hughes' focus on quality of tools and services, the
deal will also improve drilling efficiency which in turn ensures
Management at Statoil is optimistic on the successful execution of
the deal, given Baker Hughes' expertise and experience in the NCS.
Houston, Texas-based Baker Hughes - the world's third-largest
oilfield services provider after
) - offers a range of services to the global oil and gas industry.
The company is a major supplier of wellbore-related products and
technology services and systems. It caters to drilling, pressure
pumping, formation evaluation, completion and production, and
reservoir technology. It also offers consulting services to the
worldwide oil and natural gas industry.
Stavanger, Norway-based Statoil is a major international integrated
oil and gas company. Though Statoil has operations in all major
hydrocarbon-producing regions of the world, it has an upstream
focus on the NCS.
Baker Hughes holds a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months. On the other hand,
Statoil retains a Zacks #2 Rank, translating into a short-term Buy