Oilfield Services
Things We've Learned This Week
CS Comment sendspace.com
Manifa Ahead of Schedule. Saudi Aramco said this week that it has
started production at the Manifa oil field three months early. Production
is set to reach 500 kbpd in July and grow to 900 kbpd by YE ’14. Recall,
HAL’s Stim Star Arabian Gulf vessel began its stimulation work at
Manifa in 3Q12. The Manifa oil field consists of 27 man-made islands
that all have solid access to the oil below.
FMC Technologies (FTI) announced on Monday that it has signed a 4-year
frame agreement with Petrobras (PBR) to provide subsea services for
offshore Brazil. The agreement will support new equipment installations and
maintenance for the more than 350 FTI subsea trees and manifolds currently
in operation with Petrobras. Frame agreements are a competitive advantage
for FTI, but we do not expect this to have a significant impact. This is like
Petrobras saying: “I always shop at ABC store for my groceries, but now I
have a written agreement to shop at ABC store.” — there’s no difference.
Fracking in the Marcellus. We spoke with Range Resources (RRC) this
week about their service contracts in the Marcellus. We had previously
heard that RRC had hired a Patterson-UTI (PTEN) frac fleet, which was
contributing to PTEN’s strong pressure pumping results. PTEN has
historically performed well in the Marcellus and RRC has a large presence,
but it appears that RRC has not hired PTEN on a contracted basis in the
basin. Frac Tech and Weatherford (WFT) are RRC’s primary completions
servicers in the region.
UDW demand is good - LLOG Exploration signs SDRL newbuild
contract –LLOG, an independent, signs a newbuild drillship, West Neptune
(10,000’ DP drillship, Jun’14 delivery), for 3-yrs at ~$605k/d in GOM (model
$600k/d). We think this is only one of three deep water rigs LLOG needs.
Demand is good and is coming from interesting places.
Happy 1st Birthday. Tues marked FET’s first year as a publically traded
company. Look for FET’s Valve Solutions and Production Equipment
business lines to continue to grow in presence. Gas utility pipeline
maintenance, petrochemical plant buildouts, and the implementation of the
Pipeline Safety Act are driving demand for valves, storage and surface
processing equipment. The WSJ highlighted the deterioration of U.S.
pipeline infrastructure this week, in “Big Spills From Aging Oil Pipelines”.
ROSE increased its 2013 capex guidance to $840-$900mm from $640-
$700mm, according to company releases. |
