Baker Hughes said to be favored for Petrobras drilling contract

|About: Baker Hughes Inc. (BHI)|By:, SA News Editor

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.