Smith International, Inc. Announces Acquisition
finance.yahoo.com
January 5, 2010
HOUSTON--(BUSINESS WIRE)--Smith International, Inc. (NYSE:SII) announced that on December 31, 2009 its PathFinder Energy Services business acquired a contract with Petróleo Brasileiro (“Petrobras”) representing an estimated $80-100 million of revenue over the 3-year term and substantially all of the directional drilling assets from San Antonio International do Brasil. It is anticipated that employees supporting the contract will be retained and future operations will be provided by PathFinder through the newly completed Smith facility in Macae, Brazil. “The new base is a state-of-the-art facility bringing together all Oilfield Segment divisions of Smith under one roof. The addition of this contract provides a pivotal piece in our region-wide initiative to provide Optimized Drilling Services to Brazil and the region,” stated Nigel Evans Geographic Business Unit VP for Smith in Latin America. Although PathFinder has been working for Petrobras in Brazil for several years, San Antonio had previously been the lead contractor through which PathFinder served clients in the country.
“This deal provides a significant operating base for Smith and PathFinder in one of the fastest growing markets in the world,” stated Brent Janner, President of PathFinder Energy Services. “We are confident this transaction is a key step to expanding our formation evaluation and directional drilling services throughout Latin America.”
PathFinder Energy Services is a provider of directional drilling services including drilling motors, measurement-while-drilling and one of only five companies worldwide offering a complete line of logging-while-drilling services. In addition to its operations in Brazil, PathFinder has operations in the United States, Canada, the North Sea, Egypt, Saudi Arabia, Mexico, Bolivia, Romania and Kazakhstan. |
