Schlumberger expects increase investment in exploration in the II half

Oilfield services company Schlumberger expects high activity in the field of oil exploration and production in the II half of this year, according to Platts. 

 

In the context of the ongoing global economic recovery global oil market is pretty tough, amid strong demand a recurring uncertainty about the proposals related to the political events in different parts of the world, said CEO Paal Kibsgaard during a teleconference dedicated to the results of Schlumberger in the II quarter . 

 

However, in general, the price of the brand Brent, who holds above $ 100 a barrel, should stimulate investment in activities related to the oil on the background of the continuing growth in production in the United States he said. 

 

- In 2014, we continue to expect growth in the level of investment in exploration and production of more than 6%, mostly connected with the development, and not to production activities. In this exploration expenditures in 2014 will be held at the same level due to lower costs for seismic at a time when international oil companies consider a priority to generate cash flow, - said Kibsgaard. 

 

On the world market, where saved "a high level of competition," Schlumberger's revenue increased by 5% compared to the same period last year due to high growth in the Middle East, Asia, Europe and Africa, with the operating margin before taxes was 24%, that is, has reached the level of what was not even before the global recession that began in 2008, said Kibsgaard. 

 

He added that the international sanctions against Russia did not affect the business of Schlumberger. Moreover, the new contracts for projects in Sakhalin will allow the company to end the year on a "high note," said Kibsgaard. 

 

In II quarter activity in Latin America has been uneven, and the company's revenues in the region decreased by 3% to $ 1.91 billion. Weak activity in Brazil and Mexico only partly offset by higher activity in Argentina - especially in the Vaca Muerte shale formation (Vaca Muerta), - Ecuador and Venezuela. In Mexico, where budgetary constraints have led to a decrease in the number of drilling rigs, forecast II half looks stronger as the country solves some problems, because of which the work was stopped drilling rigs, Schlumberger deployed in the south, said Kibsgaard. 

 

The Middle East and in Asia, where the company's revenues in the II quarter increased by 12% compared to the same period last year and amounted to $ 2.96 billion, was the engine of growth in Saudi Arabia, which is becoming one of the "largest and most high-tech components of our global portfolio," , he said. - We continue to build resources and invest in this country, - he added. 

 

Activity companies in southern Iraq has declined compared to last year due to the political instability, and the activity in northern Iraq was high, especially - in the field of exploration drilling. 

 

Revenues in North America increased by 16% year on year, to $ 3.89 billion, despite the weakness of seismic sales. Schlumberger is continuing to increase its share in the market for hydraulic fracturing, artificial lift and land drilling for unconventional and shale deposits, said Kibsgaard. 

 

"Nefterynok"