US services company Halliburton said today it has won an integrated turnkey drilling contract from Saudi Aramco for work in South Ghawar including work on Uthmaniyah, Haradh, Hawiyah and Shedgum.
The five-year contract, with an option for an additional five-years, calls for the provision of drilling rigs, directional and horizontal drilling, logging while drilling, cementing, mud engineering, wireline logging, completion, perforating, and other well construction activities, including engineering and management of the entire drilling operations.
The project is expected to use three to four rigs, and will involve between 153 and 185 oil production, water injection and evaluation wells.
Services companies such as Baker Hughes, Schlumberger, Sinopec, Halliburton and Weatherford were among the bidders.
The win is positive for Halliburton and negative for Baker Hughes, who was thought to be most likely winner, said investment bank Tudor, Pickering, Holt in a research note today.
The deal is believed to be in excess of $500 million added the bank.
Halliburton said the contract is Aramco's first-ever integrated turnkey drilling award, as part of a strategy to increase collaboration with major oilfield service providers.
Shares in Halliburton rose 1.1% in premarket trade to $30.90 per share.