Halliburton and Petrobras Sign $2.5 Billion Contracts for Offshore Oil Fields

Strategic Insights -

Halliburton Company and Petrobras announced a major partnership to develop the Barracuda and Caratinga offshore oil fields in Brazil. The contracts, valued at over $2.5 billion, will be performed by Halliburton's Brown & Root Energy Services and Halliburton Energy Services business units, along with Petrobras' Exploration and Production unit. The partnership represents a significant recognition of Halliburton's capabilities in deepwater oil and gas resource development.

Key Takeaways:

  • Halliburton and Petrobras have signed contracts worth over $2.5 billion to develop the Barracuda and Caratinga offshore oil fields in Brazil.
  • The contracts will be performed by Halliburton's Brown & Root Energy Services and Halliburton Energy Services business units, along with Petrobras' Exploration and Production unit.
  • The principal agreement is a lump-sum engineering, procurement, and construction (EPC) contract between Brown & Root Energy Services and the Barracuda & Caratinga Leasing Company B.V.
  • Work will commence in July 2000 and will include construction of 51 wells, fabrication and installation of flowlines and risers, construction and installation of floating production, storage, and offloading vessels (FPSOs), and commissioning, start-up, and operations support for both fields.
  • Each of the FPSOs will have a storage capacity of 2 million barrels and a production capacity of 150,000 barrels of oil per day.
  • The Barracuda and Caratinga Fields are located in the Campos Basin, offshore Brazil, in water depths varying between 600 and 1350 meters.
  • Halliburton Energy Services provides products, services, and integrated solutions for oil and gas exploration, development, and production, with capabilities ranging from initial evaluation to drilling, completion, production enhancement, and well maintenance.
  • Brown & Root Energy Services supplies engineering, construction, operations, and maintenance services to the upstream oil and gas industry worldwide.
  • Halliburton Company is the world's largest diversified energy services, engineering, construction, and maintenance company, with consolidated revenues of $14.9 billion in 1999 and a global workforce of approximately 100,000 in more than 120 countries.

Statistics:

  • Contracts valued at over $2.5 billion
  • 51 wells to be constructed
  • Fabrication and installation of flowlines and risers
  • Construction and installation of two floating production, storage, and offloading vessels (FPSOs) with a storage capacity of 2 million barrels and a production capacity of 150,000 barrels of oil per day
  • Water depths of 600-1350 meters in the Campos Basin, offshore Brazil
  • 40% of the value of the FPSOs' work to be performed in Brazil
  • 300 service centers in more than 90 countries
  • Global workforce of approximately 100,000 in more than 120 countries
  • Consolidated revenues of $14.9 billion in 1999

Sources:

  • Halliburton Company, "Halliburton and Petrobras Sign $2.5 Billion Contracts for Offshore Oil Fields in Brazil"
  • Petrobras, "Halliburton and Petrobras Sign Contracts to Develop Offshore Oil Fields"
  • Halliburton Company, "About Halliburton"
  • Itochu, "Halliburton and Petrobras Sign Contracts for Offshore Oil Fields"
  • Mitsubishi, "Halliburton and Petrobras Sign Contracts for Offshore Oil Fields"