August 31, 2010 / 1:18 PM / 10 years ago

UPDATE 2-Halliburton wins Eni contract in Iraq

* Contract worth multimillions of dollars

* Second Iraq job announced by Halliburton this month

* Halliburton shares edge lower (Recasts; changes dateline, previously NEW YORK; adds share price)

HOUSTON, Aug 31 (Reuters) - Halliburton (HAL.N), the No. 2 oilfield services group, said on Tuesday it won a contract from Italian oil company Eni (ENI.MI) to help squeeze more oil from 20 wells in the Zubair field in southern Iraq.

Oil producers and oilfield services companies, including Halliburton peer Schlumberger Ltd (SLB.N), are ramping up operations in Iraq, which is hoping to use its vast oil resources to rebuild the country.

Halliburton did not give financial details on the deal, citing a confidentiality clause. It described the job as a “multimillion dollar” contract involving “rigless” services such as wire-line logging, perforating and acidizing used to increase production at existing wells.

Work on the contract has already begun and the company’s base is fully operational, Halliburton said in an email.

Eni sealed the final contract with Iraq on Jan. 22 for the 4 billion-barrel Zubair oilfield. Eni and its partners, U.S.-based Occidental Petroleum Corp (OXY.N) and state-run Korea Gas Corp (KOGAS), set an output target of 1.2 million bpd. The consortium planned to invest more than $20 billion and accepted a remuneration fee of $2 a barrel.

The group agreed with Iraq to set the baseline production level at 183,000 bpd. [ID:nRAS832007]

“Halliburton has made a strategic investment in our Iraqi infrastructure and the award of this contract, coupled with the recent letter of intent awarded by Shell and its partners, demonstrates that we have the technology and people in place to deliver in Iraq,” Halliburton Chairman and CEO David Lesar said in a statement.

The company, which has headquarters in Dubai and Houston, said earlier this month it had been awarded a letter of intent to work with a Shell-led (RDSa.L) consortium developing the Majnoon oil field in southern Iraq, one of the world’s largest.

Shares of Halliburton fell 19 cents to $28.30 in morning New York Stock Exchange trading. That decline was in line with a slight drop in the Philadelphia Stock Exchange Index of oilfield services companies. (Reporting by Matt Daily in New York and Anna Driver in Houston; Editing by Maureen Bavdek and Steve Orlofsky)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below