Halliburton Lands Aramco Deal for 285-Well Onshore Program in Saudi Arabia
Halliburton has won multi-year lump sum turnkey contracts from Saudi Aramco to support an onshore oil re-entry program spanning roughly 285 wells, World Oil reports.
Market Impact
The contracts call for an integrated execution model covering oil re-entry operations, drilling, completions and workovers across multiple Aramco onshore fields, according to World Oil. The initial term runs three years, with options to extend up to two additional years, giving the program a potential runway of five years.
The award comes just days after Halliburton announced a separate multi-year contract tied to Aramco’s unconventional gas development program, World Oil noted, signaling an expanding footprint for the company across both conventional and unconventional work in the Kingdom. Rami Yassine, president of Halliburton’s Eastern Hemisphere business, called the awards “a significant milestone for Halliburton in the Kingdom” and said the scope “reflects the strength of our drilling technology and our proven ability to efficiently execute complex, highly integrated operations.” Yassine added that the program will lean on Halliburton’s integrated technologies to improve drilling and completion efficiency while cutting overall well construction costs. Halliburton said execution will emphasize safety, quality and operational performance in line with Aramco’s standards.
What It Means for Subcontractors
- Drilling and workover service providers should watch for Halliburton subcontract packages tied to the 285-well scope, since the program covers re-entry operations, drilling, completions and workovers across multiple onshore fields.
- Companies offering well construction efficiency tools, such as directional drilling, cementing, and completions equipment, have a window to pitch into Halliburton’s integrated model given the stated goal of reducing well construction costs.
- The three-year base term with a potential two-year extension means subcontractors bidding into the supply chain could see work extend to roughly five years if options are exercised.
- Firms already qualified to meet Aramco’s safety and quality standards will have an edge, since Halliburton specifically flagged compliance with those standards as central to execution.
- With Halliburton also running a separate unconventional gas contract in Saudi Arabia, service companies with both conventional and unconventional capabilities may find added opportunities as the two programs scale up in parallel.
