Baker Hughes said to be favored for Petrobras drilling contract

Baker Hughes (NYSE:BHI) is poised to win the biggest contract in Petrobras' (NYSE:PBR) $1.5B-$2B offshore drilling program, according to a Bloomberg report.

BHI is said to have placed the lowest-cost bid for a contract representing half the drilling work being offered by the Brazilian company over the next four years, charging less per well compared with other drilling packages that have smaller volumes of work.

Schlumberger reportedly offered the cheapest bid for a second package representing 30% of offshore wells and Halliburton (NYSE:HAL) placed the lowest-cost offer for the remaining 20% of work.

Meanwhile, PBR has spudded the first appraisal well in the pre-salt Libra field, where production is scheduled to begin in 2017, plateauing at 1.3M bbl/day in 2030.

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Comments (2)
  • ebeuu
    , contributor
    Comments (382) | Send Message
    Sad; was there a fee?
    21 Aug 2014, 07:29 PM Reply Like
  • Rappenco
    , contributor
    Comments (697) | Send Message
    BHI is an oil service company; not a driller.
    Same for Schlumberger and Haliburton.
    All 3 of these companies provide services to the drillers who are contracted by the majors to drill their wells.
    When you read the headline of this blurb it can be misleading.
    22 Aug 2014, 04:48 AM Reply Like
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