Halliburton Bags $600MM in Devt Contracts for Deepwater Angola

Halliburton has been awarded long-term high-value contracts by BP Angola. BP's Angola Program covers up to four developments, to be based on a standardized design, and drilling activity is scheduled to commence in 2010.

The first development in Block 31, PSVM, was recently sanctioned by BP Angola and its partners. Block 31 covers an area of 5,349 square kilometers and lies in water depths of between 1,500 and 2,500 meters. The Plutao, Saturno, Venus and Marte (PSVM) fields lie in the north east sector of Block 31, in a water depth of approximately 2000m, some 400 kilometers north west of Luanda. First oil for these fields is planned in 2011 and is expected to build to a plateau of about 150,000 barrels per day by 2012.

The operator (BP) and its co-venturers have announced fifteen discoveries in Block 31 to date. Full development will comprise multiple hubs. PSVM, specifically, will comprise a converted hull floating, production, storage and offloading vessel (FPSO) with 1,600,000 barrels of storage capacity; 48 production, gas and water injection plus infill wells; 15 manifolds and associated subsea equipment; 170 kilometers of flowlines and 95 kilometers of control umbilicals.

Commitments related to the remaining three developments are anticipated to be awarded upon sanction of the additional projects, with the drilling program taking place over a multi-year period. The development program in total is expected to eventually exceed 150 wells.

The contracts awarded to Halliburton encompass the key elements of Well Completions including Upper and Lower Completions Equipment and Downhole Flow Control. In addition, Halliburton has been awarded the Drilling and Completions Fluids business for these wells.

The estimated value of these contracts will, if all four developments are sanctioned, be in excess of $600MM.