Halliburton 2011 Annual Report Download - page 66

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Initiatives and recent contract awards
Following is a brief discussion of some of our recent and current initiatives:
- increasing our market share in the more economic, unconventional plays and deepwater
markets by leveraging our broad technology offerings to provide value to our customers
through integrated solutions and the ability to more efficiently drill and complete their
wells;
- exploring opportunities for acquisitions that will enhance or augment our current
portfolio of services and products, including those with unique technologies or
distribution networks in areas where we do not already have large operations;
- making key investments in technology and capital to accelerate growth opportunities. To
that end, we are continuing to push our technology and manufacturing development, as
well as our supply chain, closer to our customers in the Eastern Hemisphere, and we are
building a new, world class technology center in Houston, Texas;
- improving working capital, and managing our balance sheet to maximize our financial
flexibility. In 2011, we launched a project in North America to redesign our service
delivery platform for services through the rollout of improved equipment designs and
improved field procedures to reduce cost and improve efficiency;
- expanding capabilities in mature fields to expand our service and consulting capabilities;
- continuing to seek ways to be one of the most cost efficient service providers in the
industry by using our scale and breadth of operations; and
- expanding our business with national oil companies.
Contract wins positioning us to grow our operations over the long term include:
- a three-year contract award by Chevron, with extension opportunities, to provide
integrated services for shale natural gas exploration in Poland. Under this contract, we
will provide drilling services, mud logging, cementing, coiled tubing, slickline services,
well testing, completion and hydraulic fracturing, and project management services;
- contract awards by Statoil, with the potential to exceed more than $200 million in value,
to provide directional drilling, logging-while-drilling, cementing, drilling fluids, and
completion equipment and services for two high-pressure and high-temperature (HP/HT)
fields offshore Norway;
- contract awards for equipment and services on two offshore blocks in the South China
Sea as part of the first ultra-HP/HT oil and gas drilling project in Asia. Under these
contracts, we will provide several-HP/HT technologies for drilling, completions,
cementing, and testing, including two industry-first technologies;
- a three-year contract extension by Chevron Thailand, which includes provisions for
directional drilling, logging- and measurement- while-drilling services for the ongoing
offshore developments in the Gulf of Thailand;
- a contract by Exxon Mobil Iraq Limited to provide drilling services for 15 wells in the
West Qurna (Phase I) oil field located in southern Iraq. This is in addition to work
awarded in this field by the same customer in 2010. Under this contract, we will provide
a complete range of well construction services, utilizing three drilling rigs to deliver the
wells; and
- a contract by Statoil to provide integrated drilling and well services in offshore Norway
with options up to eight years in duration with extended scope and activity. We will
provide directional drilling services, logging- and measurement-while-drilling services,
surface data logging, drill bits, hole enlargement and coring services, cementing and
pumping services, drilling and completion fluids, completion services, and project
management.