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Oilfield services stocks (OIH) have received a second boost this week as Saudi Aramco, Saudi Arabia's national oil company, signaled an increase in development activity.
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| OIL SERVICES ETF |
Oilfield services leaders Schlumberger (SLB) and Halliburton (HAL) each jumped 4% this Monday after Schlumberger said work disruptions caused by upheaval in North Africa would dent its first-quarter earnings. Investors focused instead on the bullish picture of the industry's prospects painted Monday by Chief Executive Andrew Gould.
A Halliburton release after Monday's market close said the company expects impact of up to 4 cents to first-quarter earnings from geopolitical issues in North Africa.
Halliburton's release also said the company "expects to increase activity in its Manifa project based on discussions with its customer in Saudi Arabia." Halliburton confirmed it had met with Aramco executives last weekend. You can find this info on their website.
The Manifa project, estimated at $11 billion, reportedly calls for 31 artificial drilling islands as well as 13 offshore platforms. Aramco estimates the field's heavy oil reserves at more than 10 billion barrels. Halliburton was contracted in 2008 to perform a wide array of drilling and services on a total of 93 wells.
The company then announced in a Q1 2009 conference call that the project's startup had been deferred.
Halliburton has confirmed Aramco was targeting a 30% increase to its rig count, from around 92 to 118. Growth is expected to increase in the second half and into 2012, he wrote, adding that Schlumberger, Halliburton and Baker Hughes (BHI) have the highest exposure to Aramco. Weatherford International (WFT) also stands to benefit.
A Halliburton release after Monday's market close said the company expects impact of up to 4 cents to first-quarter earnings from geopolitical issues in North Africa.
Halliburton's release also said the company "expects to increase activity in its Manifa project based on discussions with its customer in Saudi Arabia." Halliburton confirmed it had met with Aramco executives last weekend. You can find this info on their website.
The Manifa project, estimated at $11 billion, reportedly calls for 31 artificial drilling islands as well as 13 offshore platforms. Aramco estimates the field's heavy oil reserves at more than 10 billion barrels. Halliburton was contracted in 2008 to perform a wide array of drilling and services on a total of 93 wells.
The company then announced in a Q1 2009 conference call that the project's startup had been deferred.
Halliburton has confirmed Aramco was targeting a 30% increase to its rig count, from around 92 to 118. Growth is expected to increase in the second half and into 2012, he wrote, adding that Schlumberger, Halliburton and Baker Hughes (BHI) have the highest exposure to Aramco. Weatherford International (WFT) also stands to benefit.
Long: HAL (bought at 49.02)
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