The world's largest oilfield services provider,
) has been contracted by Norwegian energy firm
) for electric wireline logging services on the Norwegian
continental shelf (NCS). The four-year deal is valued at $342
million, and is expected to commence in February 2013 with
extension options. The contract is applicable to all production and
exploration licenses on the NCS.
The work scope of the agreement covers the provision of open-hole
logging, cased-hole logging, as well as borehole seismic and
perforation services. Statoil expects Schlumberger to move forward
with novel solutions for formation evaluation and drilling and well
operations. The use of advanced technological equipment with the
application of new technology is also expected.
Management at Statoil believes that improved logging services will
help in detecting reservoirs during the exploration and production
phase of projects. Therefore, such moves provide accuracy to the
company's estimation of hydrocarbon volumes and enhance recovery.
Earlier in 2012, Statoil had signed a NOK 900 million ($155
million) contract with a unit of Schlumberger - Framo Engineering -
whereby the unit would design and build subsea gas compression
plants for the Gullfaks field.
Statoil is a Norway-based major international integrated oil and
gas company. Though the company has operations in all major
hydrocarbon-producing regions of the world, it has an upstream
focus on the NCS.
Houston, Texas-based Schlumberger Limited is a leading oilfield
services company, providing technology, project management and
information services to the global oil and gas industry.
We believe the company is favorably positioned to benefit from the
current trends in oilfield services, given improving activity
levels and greater need for stimulation and completion of services
in North America.
Longer term, we maintain a Neutral recommendation on both the
SCHLUMBERGER LT (SLB): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
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