MEED reports that prospects look good for the only oil services companies eligible to bid for work on Iraq’s oil fields.
At the Adipec oil and gas conference, which took place between 1-4 November in Abu Dhabi, the stands belonging to the ‘big four’ US oilfield services companies — Schlumberger, Baker Hughes, Halliburton and Weatherford — were busy as people queued up meet their senior decision-makers.
Prospects are definitely looking up for the big four at the moment and the reason, according to MEED, is Iraq. They, together with local Oil Serv, are the only oil field services companies being allowed to bid for work on the country’s existing oil fields.
After spending so much money during the licensing rounds, the international oil companies need to ramp up production on the Iraq fields and the quickest way to do it is to give the work to the services companies on a turnkey basis. By taking on such a risky venture, these five companies are hoping that it positions them correctly for when the market opens up fully.
Working in Iraq is risky in many ways, but developing these oil fields is about as close as you can get to a sure thing in the country. The industry knows that developing Iraq’s hydrocarbon reserves is real and it is happening. That’s why the big four’s stands were so popular at Adipec.
With Abu Dhabi and Saudi Arabia becoming quieter as they reach their production targets, the whole of the upstream oil and gas industry is relying on Iraq to drive regional revenues for the next 10 to 20 years.
That is where the big four are going and the rest are queuing up to follow.