Oilfield Services
Credit Suisse Comment
Things We've Learned This Week - 28 March 2013
SLB: We mentioned last week that HAL was doing the drilling and
measurement and mud logging on the RIG Expedition in the Red Sea but
our research this week with Greg Lewis points out that SLB is providing all
the other services on the Expedition (aside from the ROV which is OII) and
is providing all the services on the Ensco 76 jack-up for Aramco. We
estimate the cost of services on a deepwater rig to be ~33% of the AFE.
NBR: The founder of the PE shop and current Nabors activist, Pamplona
Capital Management, Alex Knaster is interestingly a former independent
director of NBR from 2004-2008. Knaster was a member of NBR’s
Governance & Nominating Committee and member of the Compensation
Committee as well. Pamplona owns 8.8% of NBR as of January 22nd. Comp
realignment and a dividend are positive so far. Aggressive market share
gains are sometimes necessary and always painful.
PBR & FPSOs: SBM Offshore confirmed in a March 20th release that “it is in
negotiation with Petrobras on the delivery of two FPSOs.” These 2 would be
in addition to the one already under construction at a shipyard near Rio de
Janeiro. According to Subsea Engineering News, the 2 FPSOs in
discussion here are destine for Lula Alto and Lula Central and will be
delivered no later than November 2015 and January 2016, respectively.
SBM says, 65% will be the minimum local content requirement, which
reflects why NOV, OIS, and CAM are all ramping their manufacturing
capabilities in Brazil so aggressively in 2H12 and 1H13.
High Yield Energy Sector Issuance year-to-date totals $12.9 billion (24
deals) compared to $17.4 billion (31 deals) in 2012 and $12.6 billion (32
deals) in 2011. We expect more high yield deals to come throughout 2013.
WFT Board Changes Reporting Line: This week it was announced that
Dharmesh Mehta has been promoted to Executive Vice President and Chief
Administrative Officer (CAO). With the promotion came a noteworthy shift in
reporting lines. John Briscoe, CFO, and Joseph C. Henry, Co-General
Counsel, now report directly to Mr. Mehta instead of Bernard (CEO). Some
reorganization after the last 18 months was to be expected.
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