Halliburton and National Oilwell launch alliance; team starts work on contract in Mexico
HOUSTON--July 6, 2004--Halliburton's (NYSE:HAL) Baroid Product Service Line, in alliance with National Oilwell, announced the launch of their first major project in Mexico under the new Baroid/National Oilwell Alliance to provide solids control and waste management services and equipment at the rig site. Further, the team was recently awarded a solids control and waste management service and equipment contract in Bangladesh while similar operations are already under way in the United States, Venezuela and Brazil.
Under all contracts, Halliburton provides all fluids services at the rig site, including field maintenance, while National Oilwell builds and supplies the necessary equipment and systems. The team is working on projects for both land and offshore operations.
"Drilling waste management costs are increasing significantly and are expected to continue to rise as global markets demand higher environmental performance," said Simon Seaton, Halliburton's global operations manager for the Baroid Product Service Line. "The alliance allows Baroid to offer comprehensive waste management services and a complete line of state-of-the-art solids control equipment."
The alliance between Baroid and National Oilwell, initiated in September 2003, allows Baroid to offer an increased participation in the solids control and drilling waste management market.
"The alliance brings together Baroid's broad experience in waste management, environmental compliance, and solids control optimization with National Oilwell's expertise in rig design, solids control and waste management systems," said Tab Tettleton, Global Product Manager for National Oilwell. "The Baroid/National Oilwell Alliance provides significant advantages to our customers, including vastly improved efficiency in solids control equipment and processes."
Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services and Engineering and Construction Groups. The company's World Wide Web site can be accessed at www.halliburton.com.
National Oilwell is a worldwide leader in the design, manufacture and sale of comprehensive systems and components used in oil and gas drilling and production, as well as in providing supply chain integration services to the upstream oil and gas industry. National Oilwell's web address is www.natoil.com.
National Oilwell to buy Grant Prideco
By James Politi in New York
Published: December 17 2007 15:39 | Last updated: December 17 2007 18:35
National Oilwell Varco on Monday agreed to buy Grant Prideco for $7.5bn in cash and stock, in a deal that unites the two Houston-based oil services companies amid a wave of consolidation in the sector driven by high oil prices.
National Oilwell is paying $58 per share for Grant Prideco, composed of $23.20 in cash and the rest in shares, valuing the group at a 22 per cent premium over its closing price of $47.46 on Friday.
The combined group will have a market capitalisation of about $32bn, supplying technology and equipment such as pipes for oil and gas drilling to the world’s largest energy groups.
The deal comes on the heels of the $18bn merger announced in July of GlobalSantaFe and Transocean, two of the oil services sector’s largest companies, which raised pressure on rivals to respond.
“We are delighted with the way this transaction advances our strategic goal of providing more products and services to our customers. We believe Grant Prideco’s product range will add new growing market segments to National Oilwell Varco and benefit our customers’ needs worldwide,” said Pete Miller, National Oilwell chief executive.
The companies said that the deal would add to National Oilwell’s earnings and cash flow in 2008, assuming cost-savings of $40m.
But investors appeared unconvinced by the deal, sending National Oilwell shares down 6.5 per cent to $72.38 in morning trading. National Oilwell merged with Varco in a $2.5bn deal in 2004 and has seen the value of its shares more than treble since then.
While the deal is a sign that mergers and acquisitions activity by strategic buyers remains possible despite the credit squeeze, the market reaction suggests that shareholders could be sceptical about companies spending on acquisitions in an environment of tight lending and uncertainty over the economy.
Also in the US energy industry, Plains Exploration & Production agreed to sell a portfolio of assets in the Permian Basin, Texas, and New Mexico to rivals Occidental Petroleum and XTO Energy for $1.75bn.
Although high oil prices have driven consolidation among suppliers to the large US energy groups, there has been relatively little deal activity among the large US oil groups.
Goldman Sachs advised National Oilwell and Credit Suisse advised Grant Prideco.
Copyright The Financial Times Limited 2007
No comments:
Post a Comment