Halliburton has secured a significant contract for offshore well intervention and plug and abandonment (P&A) services from Petrobras in Brazil. The contract, awarded in early August 2024, involves providing specialized services aimed at safely decommissioning no longer productive wells.
Although the financial specifics of the contract were not disclosed, this deal underscores Halliburton's continued dominance in the oilfield services sector, particularly in Latin America. The contract with Petrobras is expected to significantly contribute to Halliburton's financial performance, further solidifying its position in the industry.
About Halliburton
Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. The company is headquartered in Houston, Texas, and operates in over 80 countries, offering a wide range of services related to the exploration, development, and production of oil and natural gas.
Halliburton's operations span the entire lifecycle of a reservoir, from locating hydrocarbons and managing geological data to drilling and formation evaluation, well construction and completion, and optimizing production. The company's comprehensive services cover every aspect of the energy industry, making it a key player in the sector.
Over the last three years, Halliburton has experienced significant financial growth, with its earnings per share (EPS) soaring. In the past year alone, its EPS increased by 35%, from US$2.17 to US$2.93, demonstrating our stability and potential for future success.
While this is sure to please shareholders, indicators seem to suggest that this growth will be sustainable for the foreseeable future. The company's sustainable growth can be attributed to its high earnings before interest and taxation (EBIT) margin, showing great efficiency at turning its revenue into profits, and its ability to adapt to the evolving energy market.
As the icing on the cake, the company also reported a revenue growth of 6.7% to US$23b over the last year.
Haliburton’s recent success reflects the recovery currently underway in the global oil and gas market. In particular, its growth is largely attributed to the increased demand for its services in regions like Latin America, where energy exploration and production activities are expanding.
Halliburton’s Role in the Plug and Abandonment Market
Plug and Abandonment (P&A) is a critical phase in the lifecycle of oil and gas wells. It ensures that decommissioned wells do not leak hydrocarbons, which could cause environmental damage. Halliburton has been a leader in this sector, offering integrated P&A solutions that minimize costs and reduce the environmental impact of decommissioning activities.
This contract with Petrobras further solidifies Halliburton's position as a leading player in the P&A market. It showcases our expertise and commitment to providing integrated solutions that minimize costs and environmental impact.
Halliburton’s chief executive, Jeff Miller, stated about the newly secured deal: “Our long-standing relationship with Petrobras exemplifies our ability to collaborate and engineer solutions to maximize their asset value. Halliburton’s offshore well intervention capabilities optimize production, extend well life, reduce costs, and access challenging reserves.”
Summary
Halliburton’s new contract with Petrobras underscores our enduring presence in the global energy sector, particularly in offshore operations. As the industry continues to evolve, our expertise in well intervention and abandonment will play a crucial role in ensuring the safe and environmentally responsible closure of oil and gas wells, fostering optimism about the future of the sector.
