Schlumberger Awarded Drilling Contract In Venezuelan Project
Zacks Investment Research | Sep 22, 2016 10:27PM ET
Oilfield services provider, Schlumberger Limited (NYSE:SLB) recently announced that it has been contracted for a major drilling project in Venezuela. The said contract is for one of the world's largest drilling projects for Venezuelan state oil company, Petróleos de Venezuela SA. Reportedly, the latter is planning to drill a total of 480 new wells in the Orinoco region, targeting an extra 250,000 barrels of oil per day over the next 30 months.
Per the agreement, Schlumberger will be responsible for drilling 80 wells in an extra-heavy oil field in the Orinoco Belt as part of a $3.2 billion project. It is to be noted that Schlumberger will be the only public company among the three contractors for the major project.
The other winners of the tender – Oklahoma-based Horizontal Well Drillers LLC and Venezuela’s Y&V Group – will be responsible for drilling the remaining wells. Moreover, other project-related activities will be carried out by Houston-based firms Halliburton Co. (NYSE:HAL) and Baker Hughes Inc. (NYSE:BHI) . Terms of the deal, however, are still under discussssion.
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