HOUSTON - Halliburton (NYSE: HAL) has been awarded a major contract extension by Salym Petroleum Development N.V. (SPD) for exploration and production services in Western Siberia, Russia. Valued at approximately (USD) $100 million, the four-year contract calls for the provision of directional-drilling, measurement-while-drilling and logging-while-drilling, along with drilling fluids and cementing services and continues Halliburton’s proven record of service delivery in the SPD fields for the last three years. The new wells to be drilled, with an average true vertical depth of 2,600 meters, include 400 S-shaped wells, plus directional and extended-reach wells.
The SPD oilfields -- located in Khanty-Mansiysk Autonomous Okrug, 120 kilometers southwest of Surgut -- include West Salym, Upper Salym and the Vadelyp fields.
"SPD’s 'drilling-the-limit' approach challenges us to continuously improve our performance,” said Iain Dowell, Halliburton’s country vice president for Russia. “We have established a high benchmark in terms of well quality and deliverability for its Russian drilling operations.”
Halliburton’s proven capabilities delivered under the initial contract include:
· Establishing a record drilling time of 5.6 days, when the average drilling time for S-shaped wells in Western Siberia ranges between 23 and 28 days for wells up to 2,800 meters deep;
· Customizing Halliburton's BOREMAX® II high-performance, water-based drilling fluid system to reduce treatment cost per foot drilled and minimize the environmental impact; and
· Delivering zonal isolations for the life of the well through deployment of dedicated crews and harsh-environment cementing units.
Founded in 1919, Halliburton is one of the world’s largest providers of products and services to the energy industry. With more than 55,000 employees in approximately 70 countries, the company serves the upstream oil and gas industry throughout the life cycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.