Halliburton 2009 Annual Report Download - page 36

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17
Initiatives and recent contract awards
Following is a brief discussion of some of our recent and current initiatives:
leveraging our technologies to deploy our packaged-services strategy to provide our
customers with the ability to more efficiently drill and complete their wells, especially in
service-intensive environments such as deepwater and shale plays;
-
retaining key investments in technology and capital to accelerate growth opportunities;
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increasing our market share in unconventional and deepwater markets by enhancing our
technological position and leveraging our technical expertise and wide portfolio of
products and services;
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lowering our input costs from vendors by negotiating price reductions for both materials
used in our operations and those utilized in the manufacturing of capital equipment;
-
negotiating with our customers to trade an expansion of scope and a lengthening of
contract duration for price concessions;
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optimizing headcount in locations experiencing significant changes in activity;
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improving working capital, operating within our cash flow, and managing our balance
sheet to maximize our financial flexibility;
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continuing the globalization of our manufacturing and supply chain processes,
preserving work at our lower
-
cost manufacturing centers, and utilizing our international
infrastructure to lower costs from our supply chain through delivery;
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expanding our business with national oil companies; and
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minimizing discretionary spending.
Contract wins positioning us to grow our operations over the long term include:
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a five-year integrated turnkey drilling contract, with an option for an additional five-year
period, which includes drilling and completion activities in South Ghawar, Saudi Arabia;
-
a three-year, $122 million contract, to provide drilling and completion fluid solutions in
Indonesia;
-
a three-year technical cooperation agreement by Brazil’s state energy company for
research and development in Brazil’s subsalt areas;
-
a two-year, $229 million contract with multiple extension options, to provide drilling
fluids and associated services in Norway;
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a three-year contract renewal for continued access to a broad suite of software
technology and petro
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technical consulting services for the development, deployment, and
ongoing global support of exploration and production technology and workflows;
-
a five-year, $1.5 billion contract to provide a broad base of products and services to an
international oil company for its work associated with North America;
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several wins totaling $1 billion, including $700 million to provide deepwater drilling
fluid services in the Gulf of Mexico, Brazil, Indonesia, Angola, and other countries,
which solidifies our position in the deepwater drilling fluids market and $300 million for
shelf- and land-related work; and
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a two-year contract extension, estimated to be valued at $450 million, to provide
cementing services and completion and drilling fluids
for StatoilHydro in offshore fields
on the Norwegian continental shelf.