Halliburton Company HAL recently announced that it received nine subsea contracts from Australia-based Woodside Petroleum. These contracts were awarded for the SNE Field Development Phase 1 Offshore Senegal.
The contract win calls for Halliburton's drilling and completion of 18 wells with an option to include up to another eight over an expected three-four year period. It would encompass activities like drilling, logging, cementing, lower completions, e-line/slick line, coiled tubing and well-testing services among others.
The world's second-largest oilfield services company after Schlumberger SLB
promised to invest in Senegal through local resourcing - from employing staff to suppliers - in addition to the scope of this contract.
The Woodside award builds on the December 2018 conditional contract that was for drilling and completion of fuel services. Prior to Senegal's contract, Halliburton was conferred with contracts from Petrobras PBR
and Royal Dutch Shell RDS.A
earlier this year.
The SNE Field Development Phase 1 drilling campaign, which is expected to start in late 2020 or early 2021, will lay its initial engineering work at the end of this year in Perth, Australia and later shift to Dakar, Senegal in 2020.
The Halliburton contracts will provide services to Senegal's first offshore deep-water oil development. The project will be operated by Woodside Petroleum that holds 35% of the stake while its partnerships in this field include Carin with 40%, FAR with 15% and Petrosen with 10% interests.
The financial cost of the contract has been kept under wraps by Halliburton. Moreover, the contracts are contingent on Woodside's positive SNE Field Development FID and final investment decisions. Breakout Biotech Stocks with Triple-Digit Profit Potential
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report Schlumberger Limited (SLB): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research