The oilfield service industry can, at times, be intimidating in its complexity and depth. Furthermore, mega-mergers (e.g. GE – Baker, Technip – FMC, Wood Group – Amec Foster Wheeler) have created a supply chain that no-longer has homogenous competition that can be easily-grouped and segmented. All the leading players in OFS now have a materially different business mix and service line provision.
Last month, Dave Lesar of Halliburton noted that the domestic market is short of fracture (frack) sand, equipment and experienced personnel. The No. 1 North American pressure pumper is adding 2,000 people to the payroll and putting idled equipment back to work at a frenetic pace. While the company continues to place an emphasis on protecting the market share it built up in the downturn, it is also warning of the eagerness of its suppliers to raise prices.
Seadrill Limited ("Seadrill" or "the Company"), as part of its restructuring plans, has signed and closed an agreement with Archer and its lenders to extinguish approximately $253 million in financial guarantees provided by Seadrill in exchange for a cash payment of approximately $25 million.
VIKING Life-Saving Equipment A/S is experiencing a moderate slowdown following several years of continuous growth. In a market affected by continued decline in two important segments, cargo vessels and offshore, revenue for 2016 totaled DKK 1.858 billion, compared to DKK 1.891 billion in 2015. Profit before tax for the financial year totaled DKK 183.5 million, compared to DKK 200.5 million in 2015.
The announcement on the 28th February of EMAS Chiyoda’s bankruptcy is the latest in a long line of vessel contractors to fall victim to the downturn since January 2015. Multiple companies such as Cal Dive, Ceona, Cecon, Hercules Offshore, Harkand and Swiber have entered into administration, taking a significant number of vessels out of the active fleet.
The production of LNG in recent years has increased dramatically.
Measures announced in the UK Budget will review the potential transfer of ownership of UK fields along with the ability to transfer the benefit of past taxes paid on production to be used for relief in future field decommissioning by the new owners.
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