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Halliburton Secures Well Stimulation Contract for North Sea Project

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Key Takeaways

  • Halliburton won a five-year contract from ConocoPhillips for well stimulation services.
  • The North Pomor vessel will be converted into an advanced stimulation vessel.
  • HAL's Octiv digital fracturing will boost efficiency of offshore operations in the North Sea.

Halliburton Company (HAL - Free Report) , a leading oilfield services provider, has secured a contract from ConocoPhillips (COP - Free Report) for providing a comprehensive set of well stimulation services. The contract has a duration of five years and includes an option for three extension periods.

Per the terms of the contract, the North Pomor vessel, part of Tidewater’s fleet, will undergo a transformation aimed at converting it into an advanced stimulation vessel. This will equip the vessel with advanced tools and technologies that should improve its efficiency in providing offshore well stimulation services in the North Sea. A major part of these upgrades includes HAL’s Octiv® digital fracturing services, which will improve the performance of stimulation equipment and allow the vessel to conduct offshore operations with higher efficiency in the North Sea.

This contract strengthens the long-term relationship between the two companies. Through this contract, ConocoPhillips will benefit from an advanced vessel that leverages Halliburton’s extensive experience in well stimulation services. The vessel is expected to enhance reservoir productivity, which should prolong the life of COP’s oil and gas assets. The contract underscores Halliburton’s expertise in well stimulation services and its focus on maximizing value for clients by providing comprehensive, technology-driven solutions. 

Zacks Rank & Key Picks

Currently, HAL carries a Zacks Rank #4 (Sell), while COP has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Enbridge Inc. (ENB - Free Report) and Antero Midstream Corporation (AM - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

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