Halliburton (HAL) has recently received a contract from Royal Dutch Shell (RDS.A) for delivering fluid services on one deepwater rig and one tension leg platform in the Gulf of Mexico. The contract includes delivering clay-free, high-performance fluid systems capable of handling deepwater challenges through improved control of downhole pressures and cold-temperature rheology. The contract size has not been disclosed.

Halliburton has gathered a couple of fluid services contracts in recent months, which will contribute significant revenue to its Drilling and Evaluation segment (accounted for 46% of total revenues in 2008). Last month, it received a $140 million contract from Total (TOT) for delivering fluid services for deepwater drilling and completion activities in offshore Angola.

In July, the company received a $190 million contract from Petrobras (PBR) for providing drilling fluid, completion fluid and drilling waste management services in offshore Brazil and a $450 million contract extension from StatoilHydro (STO) for providing fluids systems for multiple fields on the Norwegian continental shelf.

We view these contract awards as a positive for Halliburton amid the present challenging business environment. However, its overexposure to the North American pressure pumping market remains an area of concern due to a weak outlook. We maintain our Neutral recommendation for the company.
Read the full analyst report on “HAL”
Read the full analyst report on “RDS.A”
Read the full analyst report on “TOT”
Read the full analyst report on “PBR”
Read the full analyst report on “STO”
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