Norwegian oil giant
) has awarded Schlumberger Limited (
) a contract worth approximately NOK 1.15 billion ($240 million)
spanning a period of two years. It entails providing integrated
drilling services for the licenses - Gullfaks, Gullfaks Satellites,
Snorre, Statfjord, Tordis/Vigdis, Visund in the Norwegian
Continental Shelf (NCS).
The contract, effective Sep 1, 2014, also includes exploration
drilling in the NCS and has three optional extensions, each for two
years. Over the next two years, the contract will generate
employment for about 350 people in Schlumberger.
The agreement also covers services such as delivery of directional
drilling, measurement while drilling (MWD), logging while drilling
(LWD) and mud logging services. Moreover, Schlumberger will provide
RT data transfer, integrated operations/onshore support, drilling
optimization and drilling equipment.
Statoil awarded the contract to Schlumberger as it provided the
best combined technical and commercial offer. Continuous
partnership between the two companies will be vital in fully
exploiting Schlumberger's technical and operational expertise.
The contract model guarantees access to key drilling technologies
and multi-disciplinary work processes. Schlumberger has been
supplying these services for several years under this scope and
hence boasts widespread operational experience on the respective
licenses and NCS exploration.
In recent times, Statoil has delivered strong exploration results,
adding significantly to its resource base by making several high
impact discoveries. The latest finds give the company access to new
regions of Norway, Russia, Azerbaijan, Tanzania as well as
Australia. These strengthen the company's position and pave the way
for profitable long-term growth.
Statoil carries a Zacks Rank #3 (Hold). However, better-ranked
stocks in the oil and gas industry that are expected to perform
well include Weatherford International plc (
) and CNOOC Ltd. (
). Both of these have a Zacks Rank #1 (Strong Buy).
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