Halliburton 2013 Annual Report Download - page 11

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9
Sixty-five percent of hydrocarbons discovered are left in
thereservoir today. With a large and growing percentage
ofcustomer assets in decline, the significant incremental
production that can be delivered by increased recovery rates
hasmade mature fields a compelling growth segment in which
Halliburton tripled its revenue over the past three years.
The mature fields business oers a stable growth engine with
increasing levels of service intensity as new technologies are
deployed to boost recovery rates. Mature fields continue to
generate attractive returns and cash flow for our customers,
in turn driving strong demand for our services.
Opportunity Through Integration
We address the mature fields segment using three distinct
commercial models – discrete services, integrated projects and,
most recently, integrated asset management.
Halliburton’s comprehensive suite of discrete services and
technologies oers our customers a broad range of capabilities
torestore, maintain and grow production from mature assets.
Integrated solutions combine multiple technologies and services
needed to solve complex challenges across all aspects of mature
fields operations, including: sub-surface analysis, drilling and
completions infrastructure and facilities, and production
operations. Our integrated approach to service delivery increases
eciency for our customers and provides enhanced growth
opportunities for Halliburton.
Well Positioned for Premium Segments
Halliburton is fortunate to be one of a select number of service
companies to have the technical, operational and financial
capability to execute integrated asset management engagement
onbehalf of our customers. Over the past three years, we have
builtmature asset capabilities and developed proprietary execution
models that have positioned us very well in this arena. These
projects are long in duration and provide a stable base for long-
term earnings. During 2013, we began work in the Bayan field in
Malaysia and received a contract for the Humapa field in Mexico,
where operations are expected to begin in 2014.
“Migrating our portfolio to incentivized asset management contracts is
acore element of our strategy to triple our mature fields business over
the next three years. By their integrated nature and long duration, these
arrangements allow us to leverage our service delivery infrastructure to
create steady revenue streams and attractive margins in an arena where
very few companies can compete.”
MARK A. McCOLLUM
Executive Vice President and Chief Financial Ocer