Schlumberger: International, N. American Drilling Solid at Current Prices

Schlumberger Ltd. Chief Executive Paal Kibsgaard told analysts during an earnings conference call Friday that the recent drop in oil prices is not yet worrisome, and prices are still high enough to support drilling in North America and around the world.

"I'm not overly concerned," Mr. Kibsgaard said. "International activity and North American liquids activity is pretty solid at these levels."

West Texas Intermediate, the U.S. benchmark crude, has dropped by more than $10 a barrel from highs in early April, and front-month Brent, the European benchmark, has fallen by about $12 a barrel this month.

Mr. Kibsgaard said he still expects Schlumberger, the world's largest oilfield-services company, to grow international operations by about 10% this year, with "strong and consistent growth" in Sub-Saharan Africa, Russia, China and Australia.

Mr. Kibsgaard said a joint venture announced lasst week with Forest Oil Corp. (FST) in Texas's Eagle Ford shale is a "one-off" deal intended to serve as a showcase to demonstrate the company's technological capabilities.

Under the deal, Schlumberger will get a 50% stake in Forest's Eagle Ford acreage in exchange for paying $90 million in drilling costs in the form of services it will provide.

Mr. Kibsgaard said the company has invested in technology aimed at making shale wells more productive, but "uptake has been quite slow in the U.S." The joint venture is aimed at changing that and showing off technologies that he said the company is eager to bring to the marketplace.

Mr. Kibsgaard said he expects conditions onshore in North America to remain difficult. The company's margins there came in ahead of analysts expectations and were relatively flat from last quarter, and Mr. Kibsgaard said he hopes they'll remain steady next quarter.

"In pressure pumping, we're not pursuing share, we're looking to protect margins," he said.

During the quarter, growth in revenue in the U.S. Gulf of Mexico helped offset declines onshore in North America, but Mr. Kibsgaard said the need to change out faulty bolts on some rigs slowed work down there.

He said exploration and production companies are reevaluating plans in North Africa following the raid on the In Amenas natural gas field in Algeria.

Schlumberger expects activity to "remain subdued" in the area while companies re-evaluate their plans.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Schlumberger: International, N. American Drilling Solid at Current Prices

Schlumberger Ltd. Chief Executive Paal Kibsgaard told analysts during an earnings conference call Friday that the recent drop in oil prices is not yet worrisome, and prices are still high enough to support drilling in North America and around the world.

"I'm not overly concerned," Mr. Kibsgaard said. "International activity and North American liquids activity is pretty solid at these levels."

West Texas Intermediate, the U.S. benchmark crude, has dropped by more than $10 a barrel from highs in early April, and front-month Brent, the European benchmark, has fallen by about $12 a barrel this month.

Mr. Kibsgaard said he still expects Schlumberger, the world's largest oilfield-services company, to grow international operations by about 10% this year, with "strong and consistent growth" in Sub-Saharan Africa, Russia, China and Australia.

Mr. Kibsgaard said a joint venture announced lasst week with Forest Oil Corp. (FST) in Texas's Eagle Ford shale is a "one-off" deal intended to serve as a showcase to demonstrate the company's technological capabilities.

Under the deal, Schlumberger will get a 50% stake in Forest's Eagle Ford acreage in exchange for paying $90 million in drilling costs in the form of services it will provide.

Mr. Kibsgaard said the company has invested in technology aimed at making shale wells more productive, but "uptake has been quite slow in the U.S." The joint venture is aimed at changing that and showing off technologies that he said the company is eager to bring to the marketplace.

Mr. Kibsgaard said he expects conditions onshore in North America to remain difficult. The company's margins there came in ahead of analysts expectations and were relatively flat from last quarter, and Mr. Kibsgaard said he hopes they'll remain steady next quarter.

"In pressure pumping, we're not pursuing share, we're looking to protect margins," he said.

During the quarter, growth in revenue in the U.S. Gulf of Mexico helped offset declines onshore in North America, but Mr. Kibsgaard said the need to change out faulty bolts on some rigs slowed work down there.

He said exploration and production companies are reevaluating plans in North Africa following the raid on the In Amenas natural gas field in Algeria.

Schlumberger expects activity to "remain subdued" in the area while companies re-evaluate their plans.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Forest Oil Partners with Schlumberger on Eagle Ford Shale Land

Forest Oil Corp. inked a strategic partnership with oil-fields services giant Schlumberger Ltd. to develop the energy producer's Eagle Ford Shale land in Gonzales County, Texas, allowing for accelerated production growth and improvement of the project's economics.

Forest's shares jumped 11% premarket to $5.55. As of Thursday's close, the stock was down 25% so far this year. Schlumberger's shares closed at $77.14 and were unchanged premarket.

Under the terms of the agreement, Schlumberger will pay a $90 million drilling carry in the form of future drilling and completion services and related development capital in order to earn a 50% working interest in Forest's Eagle Ford Shale acreage position. Forest and Schlumberger will then participate in future drilling on a 50/50 basis.

"We believe that our Eagle Ford position is a valuable oil asset and being aligned and working together cooperatively with a strategic partner such as Schlumberger will greatly enhance the value of this important asset," Forest Chief Executive Patrick R. McDonald said.

He added Schlumberger will provide the technology, integrated services and capital resources needed for Forest to retain and develop a substantial portion of its acreage position.

Forest will be the operator of the drilling program and currently expects the drilling carry will be fully realized by the end of 2014.

As natural gas prices have tumbled, Forest and other companies that focus on natural-gas production have seen revenue decline. Forest has been shedding some of its noncore assets, shifting its focus toward liquids, in an effort to improve its balance sheet. In January, the company sold properties in South Texas, excluding the Eagle Ford Shale, for about $307 million to raise cash to repay debt.

In February, Forest said it swung to a fourth-quarter loss as write-downs and debt extinguishment costs weighed on the company's results, though core earnings topped market expectations.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Schlumberger and PdVSA Working Things Out

Schlumberger Ltd. said Monday it expects to keep working in Venezuela and is on the way to resolving its problems with that nation's state-run oil giant, which owes the oil-service provider hundreds of millions of dollars.

The announcement came two weeks after Schlumberger Chief Executive Paal Kibsgaards cited "collection issues" while saying that the company would "temporarily" cut back on activity.

Venezuela depends on international oilfield-services companies' help it develop its vast oil resources, analysts say. But they add that the country's government also relies on its national oil company, Petroleos de Venezuela, or PdVSA, as a source of cash to finance some social programs--leaving it short on cash at times.

Venezuela's oil minister, Rafael Ramirez, told reporters on March 22 that PdVSA's debts to service providers rose by 35% in 2012 compared with the previous year, when it said it owed service providers more than $12 billion.

PdVSA has not yet released its complete 2012 financial results, but said in a report on its website that its total debt rose 15% to $40 billion last year.

Still, Schlumberger has offered few specifics on what has changed in its relationship with PdVSA that led the company to stay.

Mr. Kibsgaards, in a statement posted on the company's website Sunday, said that collections from Venezuela have improved to the point where the company will recognize revenue from Venezuela in its first-quarter operations.

"We further expect to finalize a new payment agreement with PdVSA," he said, adding, "we anticipate ramping up activity to meet the current and future needs [of PdVSA]."

Schlumberger wrote in its most recent annual report that Venezuela accounts for between 5% and 10% of its outstanding payment balance, which puts the amount it is owed at $650 million and $1 billion--one of only five countries to account for that much.

Last month, after Mr. Kibsgaards's comments on cutting back on activities, Oil Minister Ramirez, who is also PdVSA's chief, said that many statements were taken out of context by various media outlets, incorrectly suggesting tensions were high between PdVSA and its partners.

Mr. Ramirez said he was visited by the Schlumberger head and had a "very good meeting" where "we clarified all of the issues."

"We don't just resolve our problems through the microphone. We called the president of Schlumberger. He showed up yesterday," Mr. Ramirez told reporters at the PdVSA headquarters in Caracas on March 22. He added that the Schlumberger chief will return to Venezuela at the end of April to tour the Orinoco heavy oil belt with PdVSA officials "to see the big push our guys are making out there in drilling and production."

In securities filings, several oil-field-services companies have complained about delayed payments from PdVSA and have said they are owed hundreds of millions of dollars for their work there, in addition to write-downs some have had to take after Venezuela announced a surprise devaluation of its currency earlier this year.

Barclays analyst James West said Monday that Schlumberger "took a hard line" with PdVSA, and the Schlumberger report of progress on the issue is good news for the other Big Four services companies--Halliburton Co., Baker Hughes Inc. and Weatherford International, which all have significant operations in Venezuela.

Mr. West said that although there have been periods of nonpayment in Venezuela depending on what else is going on in the country politically, some 95% of all receivables have been paid eventually.

"It ebbs and flows. When there's an election, PdVSA tends to stop paying," he said. "Usually over time, the majority of it is resolved for the big services companies."

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Schlumberger and PdVSA Working Things Out

Schlumberger Ltd. said Monday it expects to keep working in Venezuela and is on the way to resolving its problems with that nation's state-run oil giant, which owes the oil-service provider hundreds of millions of dollars.

The announcement came two weeks after Schlumberger Chief Executive Paal Kibsgaards cited "collection issues" while saying that the company would "temporarily" cut back on activity.

Venezuela depends on international oilfield-services companies' help it develop its vast oil resources, analysts say. But they add that the country's government also relies on its national oil company, Petroleos de Venezuela, or PdVSA, as a source of cash to finance some social programs--leaving it short on cash at times.

Venezuela's oil minister, Rafael Ramirez, told reporters on March 22 that PdVSA's debts to service providers rose by 35% in 2012 compared with the previous year, when it said it owed service providers more than $12 billion.

PdVSA has not yet released its complete 2012 financial results, but said in a report on its website that its total debt rose 15% to $40 billion last year.

Still, Schlumberger has offered few specifics on what has changed in its relationship with PdVSA that led the company to stay.

Mr. Kibsgaards, in a statement posted on the company's website Sunday, said that collections from Venezuela have improved to the point where the company will recognize revenue from Venezuela in its first-quarter operations.

"We further expect to finalize a new payment agreement with PdVSA," he said, adding, "we anticipate ramping up activity to meet the current and future needs [of PdVSA]."

Schlumberger wrote in its most recent annual report that Venezuela accounts for between 5% and 10% of its outstanding payment balance, which puts the amount it is owed at $650 million and $1 billion--one of only five countries to account for that much.

Last month, after Mr. Kibsgaards's comments on cutting back on activities, Oil Minister Ramirez, who is also PdVSA's chief, said that many statements were taken out of context by various media outlets, incorrectly suggesting tensions were high between PdVSA and its partners.

Mr. Ramirez said he was visited by the Schlumberger head and had a "very good meeting" where "we clarified all of the issues."

"We don't just resolve our problems through the microphone. We called the president of Schlumberger. He showed up yesterday," Mr. Ramirez told reporters at the PdVSA headquarters in Caracas on March 22. He added that the Schlumberger chief will return to Venezuela at the end of April to tour the Orinoco heavy oil belt with PdVSA officials "to see the big push our guys are making out there in drilling and production."

In securities filings, several oil-field-services companies have complained about delayed payments from PdVSA and have said they are owed hundreds of millions of dollars for their work there, in addition to write-downs some have had to take after Venezuela announced a surprise devaluation of its currency earlier this year.

Barclays analyst James West said Monday that Schlumberger "took a hard line" with PdVSA, and the Schlumberger report of progress on the issue is good news for the other Big Four services companies--Halliburton Co., Baker Hughes Inc. and Weatherford International, which all have significant operations in Venezuela.

Mr. West said that although there have been periods of nonpayment in Venezuela depending on what else is going on in the country politically, some 95% of all receivables have been paid eventually.

"It ebbs and flows. When there's an election, PdVSA tends to stop paying," he said. "Usually over time, the majority of it is resolved for the big services companies."

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Schlumberger Launches Downhole Reservoir Testing System

Schlumberger announced Tuesday the launch of the Quartet-HT high-performance downhole reservoir testing system. This latest addition to the Schlumberger portfolio of reservoir characterization services delivers high-quality measurements and reservoir-representative fluid samples with increased safety and efficiency in ultrahigh-temperature reservoirs to 410 degrees Fahrenheit (210 degress Celsius).

"This complete downhole testing system can isolate, control, measure and sample all in a single run," said Sameh Hanna, president, Testing Services, Schlumberger. "In addition, the new ultrahigh-temperature technology allows us to position our test tools deeper and closer to the reservoir for the best possible test results and help our customers more accurately characterize their reservoirs."

The Quartet-HT system offers significant advantages over conventional drillstem test string designs, including lower operating pressure, fewer seals and connections, multicycle flexibility, single-trip efficiency, and high-resolution quartz measurements. The new system combines four leading downhole technologies engineered specifically for high-performance ultrahigh-temperature reservoir testing: CERTIS high-integrity reservoir test isolation system, IRDV intelligent remote dual valve, Signature quartz gauges and SCAR inline independent reservoir fluid sampling.

Rigorous qualification testing, which includes shock, vibration, temperature and pressure, was performed at test facilities located in France, the United Kingdom and the United States. The quartz gauge electronics used in the Quartet-HT system underwent 3,000 hours of qualification testing above the maximum operating temperature limit. The quartz gauges have been used for more than 20,000 cumulative hours of reservoir testing operations including operations in Asia, Australia and the Middle East where the tool has successfully recorded entire jobs at temperatures exceeding 400 degrees Fahrenheit (204 degrees Celsius).

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Schlumberger Launches Downhole Reservoir Testing System

Schlumberger announced Tuesday the launch of the Quartet-HT high-performance downhole reservoir testing system. This latest addition to the Schlumberger portfolio of reservoir characterization services delivers high-quality measurements and reservoir-representative fluid samples with increased safety and efficiency in ultrahigh-temperature reservoirs to 410 degrees Fahrenheit (210 degress Celsius).

"This complete downhole testing system can isolate, control, measure and sample all in a single run," said Sameh Hanna, president, Testing Services, Schlumberger. "In addition, the new ultrahigh-temperature technology allows us to position our test tools deeper and closer to the reservoir for the best possible test results and help our customers more accurately characterize their reservoirs."

The Quartet-HT system offers significant advantages over conventional drillstem test string designs, including lower operating pressure, fewer seals and connections, multicycle flexibility, single-trip efficiency, and high-resolution quartz measurements. The new system combines four leading downhole technologies engineered specifically for high-performance ultrahigh-temperature reservoir testing: CERTIS high-integrity reservoir test isolation system, IRDV intelligent remote dual valve, Signature quartz gauges and SCAR inline independent reservoir fluid sampling.

Rigorous qualification testing, which includes shock, vibration, temperature and pressure, was performed at test facilities located in France, the United Kingdom and the United States. The quartz gauge electronics used in the Quartet-HT system underwent 3,000 hours of qualification testing above the maximum operating temperature limit. The quartz gauges have been used for more than 20,000 cumulative hours of reservoir testing operations including operations in Asia, Australia and the Middle East where the tool has successfully recorded entire jobs at temperatures exceeding 400 degrees Fahrenheit (204 degrees Celsius).

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Schlumberger Unveils Slimhole High Build Rate RSS

Schlumberger announced the release of the slimhole PowerDrive Archer high build rate rotary steerable system (RSS). The new RSS delivers build rates of up to 18-degree/100 feet, with full directional control and dogleg assurance for complex 3D well profiles and multilateral well designs.

"The slimhole PowerDrive Archer RSS can drill well profiles previously only possible with motors, in one run, with the ROP and wellbore quality of a fully rotating RSS," said Steve Kaufmann, president of Drilling & Measurements at Schlumberger. "Expanding the capabilities of our high build rate RSS services, this slimhole edition has drilled 130,000 feet in carbonate, sand and unconventional reservoirs as part of our integrated drilling systems offering, including advanced Smith PDC drillbit technology."

Built on the reliability of the PowerDrive X6 system, the slimhole PowerDrive Archer RSS, using a combination of push- and point-the-bit technologies, introduces a step change in drilling performance in geosteering and openhole sidetrack applications as proven in more than 130 field test runs in North America, the Middle East, West Africa, Europe and Asia.

In the Permian Basin, Cimarex Energy needed to drill a 6 1/8-in horizontal section within a 7-foot thick true vertical depth zone in the Bone Spring shale formation. The well design included high dogleg severity with a 10-degree/100-foot curve. The slimhole high build rate RSS was selected to eliminate additional trips downhole, and the challenging curve and lateral were drilled in one run, saving 26 hours of drilling time.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Schlumberger Unveils Slimhole High Build Rate RSS

Schlumberger announced the release of the slimhole PowerDrive Archer high build rate rotary steerable system (RSS). The new RSS delivers build rates of up to 18-degree/100 feet, with full directional control and dogleg assurance for complex 3D well profiles and multilateral well designs.

"The slimhole PowerDrive Archer RSS can drill well profiles previously only possible with motors, in one run, with the ROP and wellbore quality of a fully rotating RSS," said Steve Kaufmann, president of Drilling & Measurements at Schlumberger. "Expanding the capabilities of our high build rate RSS services, this slimhole edition has drilled 130,000 feet in carbonate, sand and unconventional reservoirs as part of our integrated drilling systems offering, including advanced Smith PDC drillbit technology."

Built on the reliability of the PowerDrive X6 system, the slimhole PowerDrive Archer RSS, using a combination of push- and point-the-bit technologies, introduces a step change in drilling performance in geosteering and openhole sidetrack applications as proven in more than 130 field test runs in North America, the Middle East, West Africa, Europe and Asia.

In the Permian Basin, Cimarex Energy needed to drill a 6 1/8-in horizontal section within a 7-foot thick true vertical depth zone in the Bone Spring shale formation. The well design included high dogleg severity with a 10-degree/100-foot curve. The slimhole high build rate RSS was selected to eliminate additional trips downhole, and the challenging curve and lateral were drilled in one run, saving 26 hours of drilling time.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here