Must-know: Key projects and technology offerings from Halliburton
A key guide to Halliburton’s 3Q14 earnings (Part 10 of 14)
Halliburton’s (HAL) new and renegotiated contracts for 2015
During 3Q14, Halliburton (HAL) was able to renew some of its pricing and stimulation contracts and renegotiate on cost recovery for ongoing contracts. The contracts included higher prices and a recoverability clause to account for current and expected future cost inflation across the key basins. The contracts are expected to be effective from 2015.
In Ecuador, HAL recently received a multibillion-dollar contract and expects Latin American revenue to be driven in 2015 as these projects ramp up next year.
Some of Halliburton’s prospects and new technology initiatives
In 3Q14, HAL signed long-term contracts with Petroamazonas, Ecuador’s state-run oil company. Under the contract terms, HAL will provide field development and asset management in nine development fields. The project has a 15-year initial duration plus a five-year extension potential.
HAL signed an agreement with an affiliate of SPT Energy Group Inc. (a China-based integrated oilfield service company) affiliate to form a joint venture company to carry out hydraulic fracturing and production enhancement services in Xinjiang, China.
HAL’s wireline and perforating business line introduced its CoreVault system. This will provides a more accurate volumetric picture of the amount of oil and gas trapped in unconventional reservoir rocks.
Key exchange-traded funds (or ETFs)
Halliburton (HAL) is a component of the Market Vectors Oil Services (OIH) exchange-traded fund (or ETF) and Energy Select Sector SPDR (XLE). Other companies in this industry that are components of OIH include Schlumberger Limited (SLB) and Baker Hughes (BHI).
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