Halliburton: 'Phenomenal' Opportunities for Global Pressure Pumping Growth

- Halliburton: 'Phenomenal' Opportunities for Global Pressure Pumping Growth

Tuesday, September 06, 2011
Dow Jones Newswires
HOUSTON
by Ryan Dezember

Halliburton Chief Executive David Lesar said Tuesday there are "fantastic and phenomenal opportunities" for oilfield service companies to expand shale drilling beyond North America, but that growth may come slowly.

"There is a lot to be excited about in the shale plays, but there are obstacles that need to be overcome and that's good because I don't think the industry today could serve a number of increasing shale plays outside the U.S.," Lesar told investors during a webcast presentation in New York.

Halliburton and other oilfield service companies have profited greatly in recent years as North American producers rush to unlock troves of oil and natural gas from deeply buried rock formations, called shales.

Demand for pressure pumping, which enables producers to crack open shales to release oil and gas, has outstripped Halliburton and its competitors' ability to provide the service, for example. In the last ten years pressure pumping has leap-frogged land drilling, offshore construction and offshore drilling to become the largest segment of the oilfield services industry, Lesar said.

While North America holds an estimated 15% of worldwide shale reserves, it has about 80% of global pressure pumping capacity.

"Even then we cannot keep up with the demand," Lesar said. "The challenge is going to be getting ramped up to address the shale opportunities outside the U.S."

Lesar said Australia, Poland and Argentina each have great potential for significant shale development, but that Australia is the only market that currently has the necessary geology, regulatory environment, pricing and infrastructure. Poland, he said, is lacking in oilfield infrastructure and in Argentina, where Halliburton recently completed South America's first shale well for Apache, government regulated natural gas prices are too low.

"Shale gas could develop very quickly in Argentina, but only at the right price and we're not there yet," Lesar said.

Global demand for natural gas should foster overseas shale development, though. Lesar said Halliburton expects worldwide demand for natural gas to rise 52% by 2030, three times the growth rate of oil demand.

Halliburton also forecasts increasing demand for deep-water drilling services. Lesar said the company is mobilizing for 31 jobs around the world, many in regions new to Halliburton, including Tanzania, Vietnam and Brunei.

Mobilizing for such jobs "doesn't come cheap," he said. "The up-front costs will weigh heavily on our margins and have weighed heavily on our Eastern Hemisphere margins, but I can tell you, this investment will pay off in the future."

Much of the work is being ordered by national oil companies, who are less likely than they have been in the past to share their resources with international oil companies, instead turning to service companies to help them extract their reserves, Lesar said. Four of Halliburton's top ten customers are now national oil companies, he said.

Lesar also said that Halliburton's pending purchase of Multi-Chem Group LLC., a deal that was announced earlier Tuesday, will give Halliburton the fourth largest production and completion chemical maker. Expected to close in the fourth quarter, the acquisition will also help Halliburton become less reliant on its peers' productions.

"It's been frustrating pumping competitors chemicals through our equipment," Lesar said.

Terms of the acquisition were not disclosed.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Halliburton Filed Claims Against BP In Texas State Court

- Halliburton Filed Claims Against BP In Texas State Court



Sep 2, 2011

Halliburton (NYSE:HAL) filed claims against BP (NYSE:BP) in Texas state court for negligent misrepresentation, business disparagement and defamation related to the April 20, 2010, Macondo incident.

The company also moved to amend its claims against BP in the multi-district litigation in New Orleans, Louisiana, to include fraud.

Halliburton has a potential upside of 66.9% based on a current price of $43.02 and an average consensus analyst price target of $71.79.

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- Halliburton Sues BP In Texas - Alleges Misrepresentation <<


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Halliburton Sues BP In Texas - Alleges Misrepresentation

- Halliburton Files Lawsuit Against BP

Friday, September 02, 2011
Halliburton Co.

On September 1, 2011, Halliburton filed claims against BP in Texas state court for negligent misrepresentation, business disparagement and defamation related to the April 20, 2010, Macondo incident. Halliburton has also moved to amend its claims against BP in the multi-district litigation in New Orleans, Louisiana, to include fraud.

These allegations are based upon BP providing Halliburton with inaccurate information prior to performing cementing services on April 19, 2010, and BP's use of and omission of that information in subsequent public statements, filings and governmental investigations.

Halliburton has learned that BP provided Halliburton inaccurate information about the actual location of hydrocarbon zones in the Macondo well. The actual location of the hydrocarbon zones is critical information required prior to performing cementing services and is necessary to achieve desired cement placement.

Halliburton remains confident that all the work it performed with respect to the Macondo well was completed in accordance with BP's specifications for its well construction plan and instructions, and that Halliburton is fully indemnified under the contract.

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Halliburton Sues BP In Texas - Alleges Misrepresentation

Friday, September 02, 2011
Dow Jones Newswires
by Melodie Warner

Halliburton filed a negligent misrepresentation, business disparagement and defamation lawsuit against BP in Texas state court related to the April 2010 Macondo explosion and oil spill in the Gulf of Mexico.

Halliburton has also moved to amend its multi-district litigation in New Orleans to include fraud claims against BP.

The oilfield-services company alleges BP provided Halliburton with inaccurate information--such as the actual location of hydrocarbon zones in the Macondo well--before cementing services began on April 19, 2010. Halliburton also claims BP has used and omitted that information in subsequent public statements, filings and governmental investigations.

"This lawsuit is the latest attempt by Halliburton to divert attention from its role in the Deepwater Horizon incident and its failure to meet its responsibilities," BP said in a statement. The energy giant said it has accepted responsibility for responding to the spill and is accordingly paying costs and compensation. BP "expects other parties to accept their responsibilities and bear their share of the costs," the statement said.

Last fall, BP released a report that largely faulted Transocean, the owner of the Deepwater Horizon drilling rig, and Halliburton for last year's disastrous Gulf of Mexico oil spill. While government investigations have generally assigned blame to both BP and its contractors, Transocean disclosed an internal investigation in June that focused almost entirely on decisions made by BP.

Halliburton said Friday it remains confident that all the work it performed was completed in accordance with BP's specifications, and that Halliburton is fully indemnified under the contract.

Shares of Halliburton were trading 2.8% lower at $41.83 moments after the opening bell.

Copyright (c) 2011 Dow Jones & Company, Inc.


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Halliburton Planning To Hire 11,000 In 2011

- Halliburton Planning To Hire 11,000 In 2011



Aug 25, 2011

Halliburton (NYSE:HAL) plans to hire 11,000 workers in North America in 2011, according to a top executive who told Jim Cramer on CNBC's Mad Money on Wednesday.

The president of the Western Hemisphere, Jim Brown said many of the new hires will be sent to North Dakota's oil-rich Bakken shale, which is one of the largest oil finds in the U.S.

Brown commented, "If you have a willingness to work and an aptitude to learn with a high school education, within a year-and-a-half to two years, you can become a front-line supervisor. That job will pay $125,000 to $130,000 a year. It's a tremendous opportunity. You gotta come to North Dakota, but what we're doing here, we're replicating across the nation."

Halliburton (NYSE:HAL) has a potential upside of 79.6% based on a current price of $40.27 and an average consensus analyst price target of $72.31.

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Halliburton Wraps Up 1st HZ Shale Well in Argentina for Apache

- Halliburton Wraps Up 1st HZ Shale Well in Argentina for Apache

Thursday, August 18, 2011
Halliburton Co.

Halliburton has successfully executed the first horizontal, multistage hydraulic fracture shale gas completion in Argentina's Neuquén Basin for Apache. Halliburton provided all major well construction and completion services for the project, resulting in the successful delivery of South America's first horizontal and deepest shale gas well.

As global development of unconventional resources materialize, Halliburton is in the process of pre-positioning Unconventional Reservoir Solutions Teams around the world. These teams draw upon the extensive knowledge and experience garnered from Halliburton's unrivalled position in North America's unconventional reservoir development. Halliburton, chosen by Apache because of its Buenos Aires-based Unconventional Reservoir Solutions Team's expertise and understanding of the specific complexities of the Los Molles shale formation, placed 10 hydraulic fracture stages in the horizontal section at a depth of over 4,400 meters.

"Halliburton's ability to apply its expertise globally will assist operators to efficiently develop frontier unconventional reservoirs," said Roberto Munoz, vice president, Latin America Region, Halliburton. "With the third largest estimated unconventional reserves after China and the United States, Argentina's shale gas potential will benefit greatly from the application of these technologies."

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Halliburton Breaks Ground at Brazil Technology Center

- Halliburton Breaks Ground at Brazil Technology Center

Tuesday, August 16, 2011
Halliburton Co.

Halliburton broke ground at the construction site of its new Technology Center at the Federal University of Rio de Janeiro (UFRJ) Technology Park, located at Ilha do Fundão, Rio de Janeiro, Brazil. The groundbreaking represents a milestone in the Cooperation Agreement signed in 2010 between Halliburton and the UFRJ for the purpose of providing research and technology development projects in Brazil.

"The Halliburton Brazil Technology Center will provide solutions and services that Halliburton can implement to accelerate deepwater field
development and to continue enhancing production from mature fields," said Tim Probert, president of Strategy and Corporate Development for Halliburton. "It is also an excellent opportunity for our company to collaborate with leading Brazilian universities and customer research centers to solve subsurface challenges in an innovative and economical manner."

The new 7,062-square-meter technology center will have three floors and include specialized laboratories, a collaboration room, a testing area, and conference and training rooms.

Halliburton has had a presence in Brazil for more than 50 years.

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Halliburton Unveils Latest Advancement in Horizontal Completions

- Halliburton Unveils Latest Advancement in Horizontal Completions

Monday, August 15, 2011
Halliburton Co.

Halliburton has deployed the most recent addition to its horizontal completion portfolio. The new RapidFrac™ completion system allows operators to set new standards for fracture completion efficiency and post-fracture production.

This innovative horizontal sliding sleeve completion system is a differentiating technology that allows for enhanced reservoir contact. In a changing landscape where operators are drilling longer laterals that require increasingly complex completions, the RapidFrac system delivers several unique differences from the "plug and perforate" system and other similar techniques.

The RapidFrac system uses a metering process that enables a single ball to open multiple sleeves isolated within an interval by swellable packers. Each RapidFrac sleeve can be tailored to specific fracture requirements along a horizontal wellbore so as to enhance post-frack production. Up to 90 sleeves can be incorporated into any one horizontal completion, ensuring maximized stimulated reservoir volume. By facilitating continuous pumping, the RapidFrac system reduces stimulation cycle time from days to hours and reduces the volume of water consumed.

"The RapidFrac system allows operators to optimize completion design, reduce operational risk, and materially reduce the time to first hydrocarbons," said Marc Edwards, senior vice president, Halliburton Completion and Production Division. "This technology also enables Halliburton to increase the utilization of its unconventional asset fleet."

Although initial system deployments have occurred in the Bakken Shale with Brigham Exploration and Williams Production Company, this technology has application for shale developments on a global basis.

"Brigham's success in the Bakken has been driven by its early adoption of game-changing technologies," said Lance Langford, executive vice president, Brigham Exploration. "We believe our industry is in the very early stage of developing tools and techniques to optimally exploit the Bakken and working with Halliburton to successfully launch its RapidFrac system is an example of what can be done in this world class resource."

In order to prove this technology with Halliburton, Williams drilled two comparable offset wells. The first was completed with the traditional "plug and perforate" method and the second utilized the RapidFrac system.

"The new RapidFrac completion system delivered significant performance benefits," said William Stenzel, vice president, Williams Williston. "(The) RapidFrac (system) enabled us to complete the well in less than half the time of a "plug and perforate" system, while delivering a stronger early time production performance. This is a major step forward in completion efficiency."

Halliburton continues to develop technical innovations designed to address the efficiency and effectiveness of unconventional hydrocarbon development, while meeting the highest environmental and safety standards.

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Halliburton Declares 3Q Dividend

- Halliburton Declares 3Q Dividend

Friday, July 22, 2011
Halliburton Co.

Halliburton has declared a 2011 third quarter dividend of nine cents ($0.09) a share on the company's common stock payable September 22, 2011 to shareholders of record at the close of business on September 1, 2011.

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Halliburton CEO: Demand for Services Outpacing Capacity Growth

- Halliburton CEO: Demand for Services Outpacing Capacity Growth

Monday, July 18, 2011
Dow Jones Newswires
by Ryan Dezember

Halliburton Co. (HAL) Chief Executive Dave Lesar said Monday that demand for oil field services in North America, such as hydraulic fracturing, continues to grow faster than companies like his can add equipment as producers rush to drill unconventional oil basins.

"Overall, growth in the demand for our service has outpaced capacity additions and we expect this imbalance to continue going forward," Lesar said on a conference call to discuss second-quarter results.

Halliburton reported a profit of $739 million, or 80 cents a share, up from $480 million, or 53 cents a share, a year earlier. The latest period included a penny in restructuring-related costs. Revenue climbed 35% to $5.94 billion, which set a new company record.

Analysts polled by Thomson Reuters most recently forecast earnings of 74 cents a share on revenue of $5.71 billion.

Much of the quarter's success is attributed to activity in North America, where high crude prices, producers' healthy balance sheets and easy capital have fueled a rush to unlock unconventional onshore oil reserves, including shale formations.

Natural gas drilling in North America, though down 2% in the quarter, remained "relatively resilient, spurred by the increase demand for power generation due to the substitution of natural gas for coal and harsh summer temperatures in various regions," Lesar said. Though Halliburton remains "a bit cautious" on natural gas drilling, the company's move to reduce prices in order to keep customers drilling has been fruitful, he said.

Halliburton also cited an uptick in work in the U.S. Gulf, winning service contracts for eight of the 18 deepwater wells that have been permitted since U.S. regulators lifted a ban on such drilling in February. The ban was enacted in response to last year's Deepwater Horizon explosion, which killed 11 workers and touched off the worst offshore oil spill in U.S. history. Halliburton provided cementing services for the well the Deepwater Horizon was drilling for BP PLC (BP, BP.LN).

Lesar cautioned, however, that the pace of new drilling permits has slowed and once the current backlog of work is complete, the Gulf of Mexico recovery could stall in the second half of the year.

Internationally, where recovery from recession has come more slowly for service companies than in North America, margins improved slightly.

"We are now seeing evidence that the international pricing is stabilizing," Lesar said. "We believe that steady volume increases should be a precursor for overall international pricing to improve toward the end of the year."

Delays in Iraq weighed on results, though Lesar said he expects profitability in the Middle Eastern country by the fourth quarter.

"We believe that Iraq will be one of the fastest-growing countries internationally in the coming years and that we will benefit significantly as a result of a first-mover strategy," he said.

Lesar also said that while Halliburton is spending heavily in sub-Saharan Africa to establish operations in countries including Mozambique, Tanzania and Uganda, the efforts should "position us for many years of profitable operations going forward," Lesar said.

(Tess Stynes contributed to this article.)
Copyright (c) 2011 Dow Jones & Company, Inc.

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North America Delivers Strong Revenue Growth for Halliburton

- North America Delivers Strong Revenue Growth for Halliburton

Monday, July 18, 2011
Halliburton

Halliburton announced today that net income for the second quarter of 2011 was $747 million, or $0.81 per diluted share, excluding employee separation costs of $8 million, after-tax, or $0.01 per diluted share. Reported net income for the second quarter of 2011 was $739 million, or $0.80 per diluted share. This compares to net income for the first quarter of 2011 of $511 million, or $0.56 per diluted share. The first quarter of 2011 results were negatively impacted by $46 million, after-tax, or $0.05 per diluted share, related primarily to reserving certain assets as a result of political sanctions in Libya. Net income for the second quarter of 2010 was $480 million, or $0.53 per diluted share.

Halliburton’s consolidated revenue in the second quarter of 2011 was $5.9 billion, compared to $5.3 billion in the first quarter of 2011. Consolidated operating income was $1.2 billion in the second quarter of 2011, compared to $814 million in the first quarter of 2011. These increases were primarily attributed to improved pricing and equipment utilization in United States land, where nearly all product service lines have benefited from the shift to unconventional oil and liquids-rich basins. Consolidated revenue and operating income were $4.4 billion and $762 million, respectively, in the second quarter of 2010.

“I am extremely pleased with our second quarter results as total revenue set yet another company record. North America continues to deliver very strong growth in revenue and profitability, while international profit recovered modestly. As a whole, our level of operating margin was the highest it has been since 2008,” said Dave Lesar, chairman, president, and chief executive officer.

“North America revenue grew by 16% sequentially compared to United States rig activity growth of 6%, with incremental operating margins of greater than 50% for both divisions. This was driven by the execution of our North America growth strategy in liquids-rich basins, and our customers’ continued adoption of our integrated solutions.

“We have for some time expressed confidence in the strength of the North America cycle, and our results this quarter validate our positive view on the market. Strong crude prices, operators’ improved cash flows combined with their ability to access capital, and the increasingly liquids-rich nature of the United States land market, give us continued confidence in the strength of North America through 2012.

“International revenue grew 8% from the prior quarter, with 18% operating income growth, excluding the impact of Libya and employee separation costs. Strong sequential operating income improvement was driven by seasonal recovery in the North Sea and Russia as well as improved activity in Latin America and Asia. However, the shutdown in Libya, project delays in Iraq, mobilization costs in Sub-Saharan Africa, and the sluggish market in the United Kingdom and Algeria have impacted the pace of recovery for our international results. In Europe, despite the employee separation costs in the second quarter, increasing interest in shale development gives us confidence in business prospects longer term. We are now seeing some evidence that international pricing is stabilizing and we believe that volume increases will result in pricing improvements toward the end of the year.

“Robust growth in global energy demand supports the continuing need to develop new hydrocarbon resources and provides us with strong growth opportunities. We anticipate that the execution of our strategy and our focus on the high growth segments of deepwater, unconventional resources, and mature fields will result in margin expansion in both our North America and international business, and will support continued delivery of strong shareholder returns,” concluded Lesar.

2011 Second Quarter Results

Completion and Production

Completion and Production (C&P) revenue in the second quarter of 2011 was $3.6 billion, an increase of $446 million, or 14%, from the first quarter of 2011. Continued demand for production enhancement services in the United States accounted for the majority of this increase.

C&P operating income in the second quarter of 2011 was $918 million, an increase of $258 million, or 39%, over the first quarter of 2011. Excluding the second quarter impact of employee separation costs in the Eastern Hemisphere and the first quarter impact of the charge for Libya, C&P operating income improved $228 million, or 33%, from the first quarter of 2011. North America C&P operating income increased $213 million compared to the first quarter of 2011, primarily due to higher demand for production enhancement services in the United States land market. Latin America C&P operating income decreased $7 million, as higher costs across South America offset higher activity levels in Mexico and Brazil. Europe/Africa/CIS C&P operating income improved due to seasonal recovery in the North Sea. Middle East/Asia C&P operating income rose as higher activity across all product service lines in Saudi Arabia and Australia offset lower completion tools sales in Malaysia.

Drilling and Evaluation

Drilling and Evaluation (D&E) revenue in the second quarter of 2011 was $2.3 billion, an increase of $207 million, or 10%, from the first quarter of 2011, with all regions experiencing revenue growth.

D&E operating income in the second quarter of 2011 was $324 million, an increase of $94 million, or 41%, from the first quarter of 2011. Excluding the second quarter impact of employee separation costs in the Eastern Hemisphere and the first quarter impact of the charge for Libya, D&E operating income increased $76 million, or 30%, from the first quarter of 2011. North America D&E operating income increased $52 million compared to the first quarter of 2011, with higher United States drilling activity both onshore and in the Gulf of Mexico. Latin America D&E operating income increased $12 million, primarily due to higher activity in Brazil. Europe/Africa/CIS D&E operating income improved due to higher seasonal demand for drilling services in the North Sea and Russia which offset lower activity in Angola. Middle East/Asia D&E operating income was flat, as higher direct sales in China and Kuwait offset contract delays in Iraq.

Corporate and Other

During the second quarter of 2011, Halliburton invested an additional $12 million in strategic projects aimed at improving Halliburton’s operations and creating the opportunity for competitive advantage for the company. These include a lower cost service delivery model in North America and repositioning technology, supply chain, and manufacturing infrastructure to support projected international growth. Halliburton expects to continue funding this effort throughout 2011.

Significant Recent Events and Achievements

Halliburton was awarded a three-year contract by Chevron to provide integrated services for shale natural gas exploration in Poland. Under this contract, Halliburton will provide directional drilling, mud logging, cementing, coiled tubing, slickline, well testing, hydraulic fracturing, and completion equipment and services. Halliburton’s Consulting and Project Management team will support the project. Drilling is scheduled to begin in the fourth quarter of 2011.

Halliburton invests considerable time, energy, and resources in engineering solutions that set new standards for environmental safety – all while helping our customers do more by using less. The CleanSuite™ services are the latest in a long line of developments designed to reduce the environmental footprint of hydraulic fracturing operations. Recent achievements for CleanSuite™ technologies include the following:
Halliburton and El Paso Corporation announced that an El Paso-operated well in North Louisiana is the first natural gas producing well to be completed using all three Halliburton proprietary CleanSuite™ production enhancement technologies for both hydraulic fracturing and water treatment. More than four million gallons of CleanStim® hydraulic fracturing fluid, comprised of ingredients sourced from the food industry, were utilized to enhance the well and resulted in faster production of natural gas. Nearly 4.8 million gallons of water were treated through Halliburton’s CleanStream® process, which uses UV light instead of additives to control bacteria in water. Another one million gallons of produced water was recycled for use in the well through the CleanWave™ system, significantly reducing the need for freshwater.

Halliburton's CleanWave™ water treatment technology was recognized with the Spotlight on New Technology Award at the 2011 Offshore Technology Conference. The awards program is designed to showcase the latest and most advanced technologies that are leading the industry into the future. Year to date, we have treated over 47 million gallons of fracture flowback water or produced water with this technology.

Deepwater is the most challenging and expensive environment in which our customers operate. Recent technological developments by Halliburton that help improve our customers’ economics by providing more effective reservoir performance information include:
DynaLink® – Halliburton’s proven, two-way wireless acoustic telemetry system – now has the added capability to control downhole test tools from the surface during drillstem testing operations while transmitting real-time bottomhole pressure and temperature data.

This data, along with acoustic actuation of test tools, provides operators the benefit of changing the pre-defined well testing program based on reservoir response while testing. This technology was recently deployed successfully in deepwater wells in Mexico and Brazil.

The 4 Phase Vertical Test Separator is another step change improvement in deepwater well testing. First, the system eliminates the need for traditionally bulky and costly sand-handling equipment and the inherent operational difficulties associated with it. Second, it streamlines rig operations by eliminating costly rig time associated with the removal of produced solids. The Halliburton 4 Phase Vertical Test Separator recently demonstrated noteworthy time and cost savings for an operator in Brazil.

Realm Energy International Corporation has contracted Halliburton’s Consulting and Project Management team to work with Realm Energy to significantly expand the technical evaluation and ranking of the highest-potential shale deposits found in emerging prospective basins globally. Realm Energy and Halliburton’s Consulting and Project Management team began their collaboration in 2009 with an emphasis on European basins. During this initial effort 10 discrete sedimentary basins in four European countries were targeted for evaluation. The collaboration identified key prospect trends, and Realm has now successfully acquired 650,000 gross acres and has filed government applications for 4.4 million acres of contiguous tracts over significant shale resources.

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Halliburton awarded contract from Chevron for integrated services

- Halliburton awarded contract from Chevron for integrated services



Jul 13, 2011

Halliburton (NYSE:HAL) announced that it has been awarded a contract from Chevron (NYSE:CVX) for integrated services for shale natural gas exploration in Poland. Work on the initial shale gas exploration drilling program is expected to begin in the fourth quarter and the contract award is for three years, with extension opportunities. Halliburton services to be provided will include drilling services, mud logging, cementing, coiled tubing, slickline services, well testing, completion and hydraulic fracturing. Halliburton will support the project with project management services. Halliburton has a potential upside of 21.1% based on a current price of $52.66 and an average consensus analyst price target of $63.76. Halliburton is currently above its 50-day moving average (MA) of $48.44 and above its 200-day of $43.06. In the last five trading sessions, the 50-day MA has climbed 0.31% while the 200-day MA has risen 0.73%.

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Halliburton Secures Gig in Chevron's Polish Shale Exploration

- Halliburton Secures Gig in Chevron's Polish Shale Exploration

Wednesday, July 13, 2011
Halliburton Co.

Halliburton has been awarded a contract from Chevron for integrated services for shale natural gas exploration in Poland.

Work on Chevron Polska's initial shale gas exploration drilling program is expected to begin in the fourth quarter and the contract award is for three years, with extension opportunities. Halliburton services to be provided will include drilling services, mud logging, cementing, coiled tubing, slickline services, well testing, completion and hydraulic fracturing. Halliburton will support the project with project management services.

"Halliburton is committed to delivering the same industry-leading expertise and service for shale gas projects in Europe as we are delivering every day in North America," said Brady Murphy, Halliburton senior vice president, Europe/West Africa Region. "We have invested early in Poland, and we have the people and the technologies in place to support this growing market."

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Realm Energy, Halliburton to Jointly Evaluate Emerging Shale Plays

- Realm Energy, Halliburton to Jointly Evaluate Emerging Shale Plays

Wednesday, June 01, 2011
Halliburton Co.

In an effort to accelerate shale gas development, Realm Energy International has contracted Halliburton's Consulting and Project Management team to work with Realm Energy to significantly expand the technical evaluation and ranking of the highest-potential shale deposits found in emerging prospective basins globally.

Realm Energy and Halliburton's Consulting and Project Management team began their collaboration in 2009 with an emphasis on European basins. During this initial effort, Realm Energy, supported by Halliburton, targeted 10 discrete sedimentary basins in four European countries for evaluation. The collaboration identified key prospect trends, and Realm has now successfully acquired 650,000 gross acres and has 4.4 million acres under government application of contiguous tracts of land over significant shale resources.

"Realm Energy is now moving into an operational phase with our European leasehold and will contract with Halliburton to leverage its extensive shale-development knowledge, gained from Halliburton's significant presence in the North American market," said Realm Energy Chairman Craig Steinke. "We could not have achieved the quality of our European portfolio without the help of Halliburton's consulting organization; this is why we have expanded our collaboration to assess and rank shale resources globally."

"Halliburton has developed a rigorous and efficient approach to the assessment, appraisal and development of shale plays, based on our
extensive experience in North America," said Paul Koeller, vice president of Halliburton Consulting and Project Management. "Our work
with Realm on the European shale plays has significantly increased our knowledge base for unconventionals, and we look forward to working with Realm on a global level."

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BP Files Suit Against Halliburton

BP Files Suit Against Halliburton

Thursday, April 21, 2011
The Wall Street Journal
by Guy Chazan

BP said it had filed a lawsuit against Halliburton, claiming its "misconduct" contributed to last year's Deepwater Horizon disaster that led to the worst offshore oil spill in U.S. history.

The lawsuit was filed Wednesday, the first anniversary of the blowout on BP's Macondo well in the Gulf of Mexico that destroyed the Deepwater Horizon rig and killed 11 men. It came shortly after BP filed suit against two other contractors, Transocean, the Deepwater Horizon's owner and operator, and Cameron, which manufactured a critical safety device called a blowout preventer.

Wednesday saw the expiration of a court-issued deadline to make filings preserving the right to sue companies involved in the spill.

Aside from BP, the main owner of the Macondo well, no company has faced more criticism over the disaster than Halliburton. It designed the failed cement seal that experts think allowed explosive gas to flow into the well and reach the Deepwater Horizon. Halliburton doesn't deny the seal failed but argues BP should have run tests that would have revealed the problem.

In the filing, BP said its action was to hold Halliburton accountable for "improper conduct, errors and omissions, including fraud and concealment." In a statement, it said the President Commission that investigated the Gulf disaster concluded that the cement slurry designed, mixed and pumped by Halliburton failed, that the company didn't provide BP with the results of failed cement tests and that its technicians "missed critical signals that hydrocarbons were flowing into the wellbore." "The record is clear that Halliburton's misconduct contributed to the accident and spill," it said.

Halliburton said it would "vigorously deny these claims."

A BP spokesman said the company wasn't suing Halliburton for a particular sum, but would ask for damages of up to the total cost of the spill. Last year, BP set aside $40.9 billion for spill-related costs.

Earlier, BP filed claims against Transocean and Cameron, maker of the blowout preventer, a huge set of valves designed to shut down a well in an emergency. BP contended that if the blowout preventer had functioned properly, the spill could have been largely avoided.

The BP complaint said Transocean was responsible for multiple failures of safety devices and well control procedures. It said BP was seeking at least $40 billion in damages. BP also seeks to force Cameron to contribute all or part of the damages that could be levied against the oil giant by the federal government.

Cameron said in a statement that it was "not surprising" that the companies are filing to protect their indemnity rights, adding that in order to protect itself it had filed counterclaims against other parties to the litigation. A Transocean spokesman called the BP lawsuit "specious and unconscionable." It said its contract with BP indemnified it against all claims related to pollution and environmental damage.

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Halliburton Topped Q1 Estimates, Top Line Surged 40% YoY

Halliburton Topped Q1 Estimates, Top Line Surged 40% YoY



Apr 18, 2011

Halliburton (NYSE:HAL) reported Q1 EPS of $0.61, ex-items, ahead of consensus estimates of $0.58 per share. Revenues for the quarter rose 40% year-over-year to $5.28 billion, topping consensus estimates of $4.89 billion.

Dave Lesar, chairman, president and chief executive officer said, "I am extremely pleased with our Q1 results, as overall revenue in the first quarter set a company record of $5.3 billion. North America delivered strong performance as margins progressed due to increased activity while Eastern Hemisphere operating income was significantly impacted by geopolitical events in North Africa, delays in Iraq, and typical seasonality."

Halliburton Sets Record Revenue of $5.3B in 1Q11

Halliburton Sets Record Revenue of $5.3B in 1Q11

Monday, April 18, 2011
Halliburton

Halliburton announced that net income for the first quarter of 2011 was $557 million, or $0.61 per diluted share, excluding the Libya charge of $46 million, after-tax, or $0.05 per diluted share, related primarily to reserving certain assets as a result of recent political sanctions. This charge does not include the operating losses incurred in Libya during the first quarter. Reported net income for the first quarter of 2011 was $511 million, or $0.56 per diluted share. This compares to net income for the first quarter of 2010 of $206 million, or $0.23 per diluted share. The first quarter of 2010 results were negatively impacted by $41 million, or $0.05 per diluted share, associated with the devaluation of the Venezuelan Bolívar Fuerte.

Halliburton's consolidated revenue in the first quarter of 2011 was $5.3 billion, compared to $3.8 billion in the first quarter of 2010. Consolidated operating income was $814 million in the first quarter of 2011, compared to $449 million in the first quarter of 2010. These increases were attributable to increased activity in United States land, as the unabated shift to unconventional oil and liquids-rich basins more than offset geopolitical issues in North Africa and the ongoing effects of the suspension of deepwater activity in the Gulf of Mexico.

"I am extremely pleased with our Q1 results, as overall revenue in the first quarter set a company record of $5.3 billion. North America delivered strong performance as margins progressed due to increased activity while Eastern Hemisphere operating income was significantly impacted by geopolitical events in North Africa, delays in Iraq, and typical seasonality," said Dave Lesar, chairman, president and chief executive officer.

"In North America, rig activity increased 2% from the prior quarter, while revenue and operating income grew 13% and 16%, respectively. This is a result of our continued strategic investment in oil and liquids-rich growth areas where service intensity continues to grow.

"Service intensity in oil and liquids-rich basins is increasing due to the demand for tailored solutions that require more complex fluid chemistry, longer laterals, higher proppant volumes, and strategic placement of frac stages. Going forward, we believe this structural shift will continue through 2011, further increasing demand for our services.

"We have been confident about the robust outlook in North America, and the prospect of higher activity in the coming quarters has made us more bullish in the strength of our business in 2011 and beyond. We believe our unique technologies and operational footprint will allow us to enhance our leadership position and provide opportunities for margin expansion.

"International revenue decreased 9% from the prior quarter and operating income declined by $252 million. The decline was primarily driven by approximately $110 million in weather related issues and the typical seasonal slowdowns of software and direct sales, approximately $105 million from political unrest and other disruptions in North Africa, including asset reserves for Libya, and approximately $20 million for project delays due to customers' logistical challenges in Iraq.

"We expect our Eastern Hemisphere margins to improve in the second quarter but they will continue to be impacted by the situation in Libya and by competitive pricing. As activity accelerates during the second half of the year, we anticipate margins will return to the levels seen in 2010. In North Africa, we expect that Libya will continue to be challenged while Egypt appears to be returning to prior activity levels. In Iraq, our delayed integrated drilling projects are now scheduled to begin in the second or third quarter of this year. We remain very optimistic about this market and expect to be profitable in 2011.

"We continue to commercialize core technologies, win key contracts, and make the necessary investments to ensure that we gain momentum as the industry enters the projected upcycle. We remain focused on global growth markets including deepwater, unconventional resources, and mature fields. We have made progress on this strategy, as evidenced by a number of recent contract awards. We believe our superior execution in these markets will deliver unique growth opportunities and position us to continue to deliver superior shareholder returns," concluded Lesar.

2011 First Quarter Results
Completion and Production

Completion and Production (C&P) revenue in the first quarter of 2011 was $3.2 billion, an increase of $1.2 billion, or 62%, from the first quarter of 2010. The continued growth in activity in United States land accounted for the majority of this increase.

C&P operating income in the first quarter of 2011 was $660 million, an increase of $422 million, or 177%, over the first quarter of 2010. Excluding the impact of the charge for Libya, C&P operating income improved $458 million, or 192%, from the prior year quarter. North America C&P operating income increased $477 million compared to the first quarter of 2010, primarily due to increased demand and improved pricing. Latin America C&P operating income increased $7 million, as lower activity in Mexico was offset by higher activity and improved pricing for production enhancement services in Argentina and higher cementing activity in Colombia. Europe/Africa/CIS C&P operating income was negatively impacted by activity disruptions caused by geopolitical issues in North Africa and project delays in Kazakhstan. Middle East/Asia C&P operating income increased $3 million as higher demand for completion tools and production enhancement services in Malaysia and China was partially offset by startup costs in Iraq.

Drilling and Evaluation

Drilling and Evaluation (D&E) revenue in the first quarter of 2011 was $2.1 billion, an increase of $313 million, or 17%, from the first quarter of 2010 due to higher activity in the Western Hemisphere and the commencement of work in Iraq.

D&E operating income in the first quarter of 2011 was $230 million, a decrease of $40 million, or 15%, from the first quarter of 2010. Excluding the impact of the charge for Libya, D&E operating income decreased $17 million, or 6%, from the prior year quarter. North America D&E operating income increased $25 million compared to the first quarter of 2010, as higher drilling activity in United States land offset the decline in the Gulf of Mexico. Latin America D&E operating income increased $23 million, primarily due to Mexico and Venezuela. Europe/Africa/CIS D&E operating income was negatively impacted due to activity disruptions caused by geopolitical issues in North Africa and lower drilling activity in the North Sea. Middle East/Asia D&E operating income decreased $19 million, primarily due to higher costs in Saudi Arabia and certain locations in Asia Pacific and startup costs in Iraq.

Corporate and Other

During the first quarter of 2011, Halliburton spent approximately $11 million on strategic projects aimed at improving Halliburton's business model, which include lowering service delivery costs in North America and repositioning supply chain, manufacturing, and technology infrastructure to support projected international growth. While the level of investment was tempered in the first quarter due to activity declines in the Eastern Hemisphere, Halliburton expects to continue funding this effort throughout 2011.

Significant Recent Events and Achievements

• Halliburton has the broadest portfolio of high-pressure and high-temperature (HP/HT) tools in the industry. Recent contract wins which expand Halliburton's market position in offshore HP/HT environments include the following:
  • Halliburton was awarded several contracts by Statoil to provide services for two HP/HT fields offshore Norway. Halliburton estimates that these significant multi-year awards have the potential to exceed more than $200 million in value. Under these contracts, Halliburton will provide directional drilling, logging-while-drilling, cementing, drilling fluids, and completion equipment and services. Drilling is scheduled to begin in the third quarter of 2011.
  • Halliburton was awarded several contracts for equipment and services on two offshore blocks in the South China Sea. This is the first ultra-HP/HT oil and gas drilling project in Asia. This project will push existing technology limits, with required equipment specifications at 250°C and 15,000 psi. Under these contracts, Halliburton will provide several ultra-HP/HT technologies for drilling, completions, cementing, and testing, including two industry-first technologies. The exploration campaign calls for two firm wells and one potential well. Drilling is scheduled to start in the third quarter of 2011.
  • Halliburton was awarded a $120 million, three-year contract extension by Chevron Thailand for directional drilling, measurement-while-drilling, and logging-while-drilling services for its ongoing offshore developments in the Gulf of Thailand. The majority of the wells that Halliburton's Sperry Drilling product service line will service are high temperature wells that exceed 150°C (302°F), with some exceeding 200°C (392°F).
• Halliburton has been awarded a contract by Statoil to provide integrated drilling and well services in offshore Norway with options up to eight years in duration with extended scope and activity. Under the first phase of the contract, Halliburton will provide directional drilling services, logging- and measurement-while-drilling services, surface data logging, drill bits, hole enlargement and coring services, cementing and pumping services, drilling and completion fluids, completion services – including multilateral junctions, SmartWell® completion systems and VersaFlex® expandable liner hangers – and project management. This is the first time Statoil has awarded an integrated well services contract in Norway, which includes project management by Halliburton, with the intent to increase efficiency and reduce development costs.
• Halliburton was awarded a contract by Exxon Mobil Iraq Limited to provide drilling services for 15 wells in the West Qurna (Phase I) oil field located in southern Iraq. This is in addition to work awarded in this field by the same customer in 2010. Under this contract, Halliburton will provide a complete range of well construction services, utilizing three drilling rigs to deliver the wells.
• As reported in the Oil and Gas Journal, Halliburton received the No. 1 overall ranking and was named the most sustainable oil/gas full service engineering company by Management and Excellence, a sustainability rating firm. Halliburton earned an AAA ranking through demonstrating quantifiable performance and risk reduction in areas such as energy consumption, earnings per share, and debt. Further, Halliburton was named "Best in Class" among all oil and gas service companies in corporate governance, sustainable management, emissions reductions, and executive remuneration effectiveness. Halliburton's score registered at 90.4 out of 100 possible points, a 26% increase from the last survey performed in 2009.
• Halliburton announced its plan to build a 200,000-square-foot manufacturing facility in Lafayette, Louisiana. The facility is expected to produce complex machined components for oilfield service operations with state-of-the-art manufacturing equipment, and will support the fast-growing needs of the Western Hemisphere oil and gas industry, including the shale markets. Construction on the new facility is scheduled to begin by July 2011 and to be completed in early 2012.
• Landmark Software and Services, a Halliburton product service line, announced that leading Brazilian exploration and production company, OGX Oil and Gas, will migrate all users of geophysical and geological software applications to the Landmark DecisionSpace® Desktop system. OGX explored and tested the capabilities of the DecisionSpace Desktop technology as part of a Landmark pre-release program launched in early 2010. OGX determined that the software suite greatly enhanced its workflow capabilities with significant improvements in productivity.
• Halliburton announced that it has integrated the drilling capabilities of several product service lines to deliver significant drilling performance gains and save operators millions of dollars in well costs. Halliburton's Optimized Drilling Performance™ approach includes the delivery of a proprietary engineering workflow, an integrated suite of drilling applications that sit on the DecisionSpace® InSite® global infrastructure, and localized, cross-functional teams. Optimized Drilling Performance has already improved production rates and saved thousands of days in drilling time in all of the major basins globally, both in deepwater and on land.

Halliburton Selected for Statoil's Ops Offshore Norway

Halliburton Selected for Statoil's Ops Offshore Norway

Thursday, April 14, 2011
Halliburton

Halliburton has been awarded a contract by Statoil to provide integrated drilling and well services offshore Norway with options up to eight years in duration with extended scope and activity.

Traditionally, Statoil has procured drilling and well services on a discrete basis. This is the first time Statoil has awarded an integrated well services contract in Norway, which includes project management by Halliburton, with the intent to increase efficiency and reduce development costs.

Under the first phase of the contract, Halliburton will provide directional drilling and logging-while-drilling services, surface data logging, drill bits, hole enlargement and coring services, cementing and pumping services, drilling and completion fluids, completion services – including multilateral junctions, SmartWell® completion systems and VersaFlex® expandable liner hangers – and project management.

The contract is part of Statoil's Fast Track Field Development initiative that has been launched to minimize the time from discovery to production and reduce development costs. In the Fast Track project, the service company and operator work more closely together as an integrated team. This results in better operational efficiency on the rigs, which, in turn, results in lower overall project costs for the operator. This allows the operator to develop marginal oil discoveries that would have been deemed uneconomical using traditional contracting models. For this contract, Halliburton's onshore operations team will integrate with Statoil's team in Stavanger, Norway.

"We are delighted with this contract, and we look forward to collaborating with Statoil to accelerate the field development and impact the production on the Norwegian Continental Shelf," said Jorunn Saetre, Halliburton's area vice president for Scandinavia.

Halliburton Gets ExxonMobil Contract in Iraq - Shares Down 2.4%

Halliburton Gets ExxonMobil Contract in Iraq - Shares Down 2.4%



Shares of Halliburton (HAL) are down as the company said it has been awarded a contract by Exxon Mobil (XOM) Iraq Limited to provide drilling services for 15 wells in the West Qurna oil field located in Southern Iraq.

Halliburton will provide a range of well construction services utilizing three drilling rigs to safely deliver the wells, the company said in a statement.

Halliburton shares are down 2.35%, or $1.12, to $47.02.

Halliburton Secures ExxonMobil Contract for West Qurna Development

Halliburton Secures ExxonMobil Contract for West Qurna Development

Monday, April 11, 2011
Halliburton

Halliburton has been awarded a contract by ExxonMobil Iraq Limited (EMIL) to provide drilling services for 15 wells in the West Qurna (Phase I) oil field located in Southern Iraq.

Halliburton will provide a complete range of well construction services utilizing three drilling rigs to safely deliver the wells.

Joe Rainey, president of Halliburton's Eastern Hemisphere operations, said, "This contract award is a testament to the ongoing success of our Eastern Hemisphere growth strategy and is in addition to work awarded in this field by this customer in 2010."

Halliburton Awarded Gig for Statoil's HP/HT Fields Offshore Norway

Halliburton Awarded Gig for Statoil's HP/HT Fields Offshore Norway

Wednesday, April 06, 2011
Halliburton

by  SubseaIQ

Halliburton has been awarded several contracts by Statoil to provide services for two high-pressure/high-temperature (HP/HT) fields offshore Norway. Halliburton estimates that these significant multiyear awards have the potential to exceed more than $200 million in value.

Under these contracts, Halliburton will provide directional drilling, logging-while-drilling, cementing, drilling fluids, and completion equipment and services at the Gudrun and Brynhild fields. Drilling is scheduled to start in the third quarter of 2011.

Halliburton's proven HP/HT technology will be key in enabling the development of the Gudrun oil and natural gas field, where temperatures exceed 150°C (302°F). Statoil is operator of the Gudrun field, which is planned for startup in the first quarter of 2014. The Brynhild HP/HT oil and gas discovery is approximately three kilometers east of the Gudrun field.

"We are proud to have been awarded these technically challenging contracts for Gudrun and Brynhild," said Brady Murphy, Halliburton's vice president for the Europe/West Africa Region. "These awards, together with our recent HP/HT wins in other offshore basins, reflect Halliburton's technology investment and proven performance in challenging well conditions. This will be an important contribution to further development offshore Norway."