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Released October 25, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite a slowing North American market for oil production, Schlumberger Limited (NYSE:SLB) (Houston, Texas) enjoyed a robust third quarter as operations abroad kept the oilfield services provider in solid shape. The company expects capital expenditures to be about $2.1 billion for the full year, roughly $500 million higher than in 2016. Industrial Info is tracking $6.2 billion in active projects involving Schlumberger, including about $2.3 billion worth under construction.
The U.S. oil rig count is now the lowest it has been since June, according to Baker Hughes, but Schlumberger and other industry stalwarts see opportunities nonetheless. Oil producers, including the rapidly growing Hilcorp Energy Company (Houston, Texas), are optimistic that Alaska will open more land to exploration, given the Trump administration's aggressive stance toward drilling and deregulation. Hilcorp's $500 million expansion of its development in the Milne Point Field, near Prudhoe Bay, could be among the planned projects to benefit. The company plans to build a drill pad with 24 horizontal wells; a Schlumberger subsidiary will serve as rig operator. For more information, see Industrial Info's project report.
In a quarterly earnings-related conference call, Schlumberger Chief Executive Officer Paal Kibsgaard noted that the company saw "strong sequential activity growth in Russia, the North Sea and Asia, while our activity in the rest of the world was largely flat compared with the second quarter." In the North Sea, Schlumberger is at work on Statoil ASA's (NYSE:STO) (Stavanger, Norway) $1.03 billion Oseberg Vestflanken II offshore development, including a $200 million drilling project for an unmanned wellhead platform. Statoil is planning 10 wells--eight for production, two for gas injection--with Schlumberger as a drilling contractor. For more information, see Industrial Info's project report.
The North Sea also is home to the largest project under construction involving Schlumberger: Wintershall Norge AS' (Stavanger, Norway) $1.25 billion subsea equipment installation for the Maria Offshore Oil and Gas Field Drilling Program in the North Sea. The development is ahead of schedule and is expected to start up in the first half of 2018. For more information, see Industrial Info's project report and October 24, 2017, article - Halliburton at Work on $2 Billion Worth of Projects, Led by Onshore, Offshore Drilling Expansions.
Schlumberger's Asian operations include the development of two oil- and gas-processing facilities for Kuwait Oil Company (Al-Ahmadi, Kuwait): a $150 million crude oil and natural gas processing facility in Sabriya, Kuwait and a $150 million crude oil processing facility in Umm Niqa, Kuwait. The Sabriya facility will feature two trains, each with a capacity of 20,000 barrels per day (BBL/d) of oil and 124 million standard cubic feet per day of natural gas, while the Umm Niqa facility will have an oil-processing capacity of 15,000 BBL/d. The projects are expected to wrap up in the spring of 2018.
Both facilities are installing Schlumberger's early-production systems, which allow producers to begin production early, while full field development remains in the planning phase and permanent facilities remain under construction. For more information, see Industrial Info's reports on the Sabriya and Umm Niqa projects.
Schlumberger's third-quarter sales stood at $7.9 billion, a 13% increase from third-quarter 2016. Net income was reported to be $545 million, compared with $176 million in the same period last year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The U.S. oil rig count is now the lowest it has been since June, according to Baker Hughes, but Schlumberger and other industry stalwarts see opportunities nonetheless. Oil producers, including the rapidly growing Hilcorp Energy Company (Houston, Texas), are optimistic that Alaska will open more land to exploration, given the Trump administration's aggressive stance toward drilling and deregulation. Hilcorp's $500 million expansion of its development in the Milne Point Field, near Prudhoe Bay, could be among the planned projects to benefit. The company plans to build a drill pad with 24 horizontal wells; a Schlumberger subsidiary will serve as rig operator. For more information, see Industrial Info's project report.
In a quarterly earnings-related conference call, Schlumberger Chief Executive Officer Paal Kibsgaard noted that the company saw "strong sequential activity growth in Russia, the North Sea and Asia, while our activity in the rest of the world was largely flat compared with the second quarter." In the North Sea, Schlumberger is at work on Statoil ASA's (NYSE:STO) (Stavanger, Norway) $1.03 billion Oseberg Vestflanken II offshore development, including a $200 million drilling project for an unmanned wellhead platform. Statoil is planning 10 wells--eight for production, two for gas injection--with Schlumberger as a drilling contractor. For more information, see Industrial Info's project report.
The North Sea also is home to the largest project under construction involving Schlumberger: Wintershall Norge AS' (Stavanger, Norway) $1.25 billion subsea equipment installation for the Maria Offshore Oil and Gas Field Drilling Program in the North Sea. The development is ahead of schedule and is expected to start up in the first half of 2018. For more information, see Industrial Info's project report and October 24, 2017, article - Halliburton at Work on $2 Billion Worth of Projects, Led by Onshore, Offshore Drilling Expansions.
Schlumberger's Asian operations include the development of two oil- and gas-processing facilities for Kuwait Oil Company (Al-Ahmadi, Kuwait): a $150 million crude oil and natural gas processing facility in Sabriya, Kuwait and a $150 million crude oil processing facility in Umm Niqa, Kuwait. The Sabriya facility will feature two trains, each with a capacity of 20,000 barrels per day (BBL/d) of oil and 124 million standard cubic feet per day of natural gas, while the Umm Niqa facility will have an oil-processing capacity of 15,000 BBL/d. The projects are expected to wrap up in the spring of 2018.
Both facilities are installing Schlumberger's early-production systems, which allow producers to begin production early, while full field development remains in the planning phase and permanent facilities remain under construction. For more information, see Industrial Info's reports on the Sabriya and Umm Niqa projects.
Schlumberger's third-quarter sales stood at $7.9 billion, a 13% increase from third-quarter 2016. Net income was reported to be $545 million, compared with $176 million in the same period last year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
