Schlumberger Unveils ReSOLVE

The world’s largest oilfield services provider, Schlumberger Limited ( SLB - Analyst Report ) has launched an instrumented wire line intervention service, ReSOLVE. The service will monitor and reduce intervention cost through control over wireline-workover operations.

This new service will provide real-time measurement and control in a small footprint and its downhole intelligence will allow customers to see intervention operations in details. This new technology will also perform more difficult operations such as selective sleeve shifting or safety valve performance evaluation.

The system includes a high-force linear actuator, a universal shifting tool (UST), a hydraulic setting tool and a milling tool. The actuator can perform fishing operations while monitoring force and displacement. The UST can selectively shift devices, even below limits.

The plug and packer tool functions hydraulically without the need of explosives. The mining tool removes scale and other obstructions from wellbore tubulars.

Houston, Texas-based Schlumberger Limited is a leading oilfield services company, providing technology, project management and information services to the global oil and gas industry.

We believe Schlumberger will benefit in the next several quarters from its strong product and services portfolio. Its second quarter experienced numerous vital new technology introductions and Schlumberger expects this to increase through the second half of 2013 and next year.

Hence, a rise in the pricing of seismic and high seismic vessel utilization and a continuous shift towards performance-based contracts as well as the new alliance with Petrofac bode well for the company’s future growth in margins and market share.

Schlumberger, which ranks ahead of Halliburton Company ( HAL - Analyst Report ) as the biggest member of the oilfield services contingent, holds a Zacks #3 Rank, which is equivalent to a Hold rating for a period of one to three months. Longer term, we maintain a Neutral recommendation on the stock.