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Released January 23, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Schlumberger Limited (NYSE:SLB) (Houston, Texas) is expecting 2018 to be a banner year, with demand for hydraulic-fracturing and drilling services on the rise in North America, and growth expected in major international markets, including the North Sea. Industrial Info is tracking nearly $5 billion in active projects involving Schlumberger, more than $2.8 billion of which is scheduled to begin or finish construction this year.
One of the largest U.S.-based projects involving Schlumberger is in Alaska, where the Trump administration has been pushing to open up more onshore and offshore area to drilling: Hilcorp Energy Company's (Houston, Texas) $500 million expansion of its development in the Milne Point Field, near Prudhoe Bay. The company plans to build a drill pad with 24 horizontal wells; a Schlumberger subsidiary will serve as rig operator.
Hilcorp is planning to spend about $285 million in Alaska during 2018, according to an announcement from the company earlier this month, $83 million will be spent on new drilling and $106 million on infrastructure upgrades. Late last year, Hilcorp drilled 10 wells at Milne Point that are already are online, according to the Alaska Journal, and the company plans to begin drilling another 50 to 70 wells this fall. Hilcorp also plans to begin work on a polymer flood project that it ultimately expects to produce between 30 million and 50 million barrels of oil from Milne Point, according to the Journal. For more information, see Industrial Info's project report.
In a quarterly earnings-related conference call last week, Paul Kibsgaard, Schlumberger's chief executive officer, said first-quarter 2018 will be "a transitory quarter," given increased business in Russia and the North Sea; costs related to the reactivation of idle capacity due to recent contract wins; and an ongoing shift of international capacity toward the Middle East and Russia.
Among Schlumberger's active projects in the North Sea is Statoil ASA's (NYSE:STO) (Stavanger, Norway) $200 million drilling project for an unmanned wellhead platform at the Oseberg Vestflanken II offshore development. Statoil is planning 10 wells--eight for production, two for gas injection--with Schlumberger as a drilling contractor. Later this year, Statoil will employ Schlumberger on $150 million in subsea installations at its Aerfugl Gas Field Development, where it plans to begin work next year on its $160 million Snadd North Drilling Program. For more information, see Industrial Info's reports on the Oseberg Vestflanken II, Aerfugl subsea and Aerfugl drilling projects.
In Russia, Schlumberger's own subsidiary, REDALIT, is constructing a $47 million pump and dewatering-equipment manufacturing facility in Gryazi, Lipetsk. The plant will produce equipment for oil production in the Lipetsk region, particularly electrical submersible pumps. For more information, see Industrial Info's project report.
In the Middle East, Schlumberger is at work on three oil and gas production projects for Kuwait Oil Company (Al-Ahmadi, Kuwait): a $150 million crude oil and natural gas processing facility in Sabriya, Kuwait, which 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; a $150 million crude oil processing facility in Umm Niqa, Kuwait, which will have an oil-processing capacity of 15,000 BBL/d; and an $80 million gas field development plan in northeastern Kuwait, which will produce 60,000 BBL/d of wet crude and 150 million standard cubic feet per day of natrual gas via 10 to 20 wells. The projects are expected to wrap up this spring and summer. For more information, see Industrial Info's reports on the Sabriya, Umm Niqa and field-development projects.
Schlumberger's revenues for 2017 stood at $30.4 billion, a 9.5% increase from 2016. The company reported a net loss of $1.51 billion, compared with a loss of $1.69 billion in 2016.
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/.
One of the largest U.S.-based projects involving Schlumberger is in Alaska, where the Trump administration has been pushing to open up more onshore and offshore area to drilling: Hilcorp Energy Company's (Houston, Texas) $500 million expansion of its development in the Milne Point Field, near Prudhoe Bay. The company plans to build a drill pad with 24 horizontal wells; a Schlumberger subsidiary will serve as rig operator.
Hilcorp is planning to spend about $285 million in Alaska during 2018, according to an announcement from the company earlier this month, $83 million will be spent on new drilling and $106 million on infrastructure upgrades. Late last year, Hilcorp drilled 10 wells at Milne Point that are already are online, according to the Alaska Journal, and the company plans to begin drilling another 50 to 70 wells this fall. Hilcorp also plans to begin work on a polymer flood project that it ultimately expects to produce between 30 million and 50 million barrels of oil from Milne Point, according to the Journal. For more information, see Industrial Info's project report.
In a quarterly earnings-related conference call last week, Paul Kibsgaard, Schlumberger's chief executive officer, said first-quarter 2018 will be "a transitory quarter," given increased business in Russia and the North Sea; costs related to the reactivation of idle capacity due to recent contract wins; and an ongoing shift of international capacity toward the Middle East and Russia.
Among Schlumberger's active projects in the North Sea is Statoil ASA's (NYSE:STO) (Stavanger, Norway) $200 million drilling project for an unmanned wellhead platform at the Oseberg Vestflanken II offshore development. Statoil is planning 10 wells--eight for production, two for gas injection--with Schlumberger as a drilling contractor. Later this year, Statoil will employ Schlumberger on $150 million in subsea installations at its Aerfugl Gas Field Development, where it plans to begin work next year on its $160 million Snadd North Drilling Program. For more information, see Industrial Info's reports on the Oseberg Vestflanken II, Aerfugl subsea and Aerfugl drilling projects.
In Russia, Schlumberger's own subsidiary, REDALIT, is constructing a $47 million pump and dewatering-equipment manufacturing facility in Gryazi, Lipetsk. The plant will produce equipment for oil production in the Lipetsk region, particularly electrical submersible pumps. For more information, see Industrial Info's project report.
In the Middle East, Schlumberger is at work on three oil and gas production projects for Kuwait Oil Company (Al-Ahmadi, Kuwait): a $150 million crude oil and natural gas processing facility in Sabriya, Kuwait, which 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; a $150 million crude oil processing facility in Umm Niqa, Kuwait, which will have an oil-processing capacity of 15,000 BBL/d; and an $80 million gas field development plan in northeastern Kuwait, which will produce 60,000 BBL/d of wet crude and 150 million standard cubic feet per day of natrual gas via 10 to 20 wells. The projects are expected to wrap up this spring and summer. For more information, see Industrial Info's reports on the Sabriya, Umm Niqa and field-development projects.
Schlumberger's revenues for 2017 stood at $30.4 billion, a 9.5% increase from 2016. The company reported a net loss of $1.51 billion, compared with a loss of $1.69 billion in 2016.
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/.
