Weatherford (WFTIQ) And ADNOC Offshore Enter $220M Accord
Zacks Investment Research | Sep 25, 2019 10:45PM ET
Weatherford International plc (OTC:WFTIQ) recently announced an accord with the Abu Dhabi Company for Offshore Petroleum Operations Limited (ADNOC Offshore). The transaction is valued at $220 million.
The agreement allows Weatherford to offer services related to directional drilling to ADNOC Offshore for a span of three years. The deal is likely to aid ADNOC Offshore boost offshore production in the United Arab Emirates. Notably, the oilfield service company has agreed to offer its Magnus rotary steerable system for ADNOC Offshore to employ this technology for operations in both new and re-entry wells.
Weatherford added that its Magnus rotary steerable system has been highly effective in delivering accurate placement of wellbore in challenging operating areas.
The latest deal follows Weatherford’s corporate procurement agreement which was signed with Saudi Aramco on Sep 17. Per the corporate procurement contract, the oilfield service player will deliver casing exit technologies and services related to completion and cementation for a period of five years.
Both the contracts are likely to secure Weatherford with incremental cashflows.
Currently, Weatherford, a leading oilfield service firm with operations in 80 countries, carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include National Oilwell Varco Inc. (NYSE:NOV) , Dril-Quip, Inc. (NYSE:DRQ) and Delek Logistics Partners LP (NYSE:DKL) . All the stocks carry a Zacks Rank #2 (Buy). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.