Weatherford International plc (NYSE:WFT) is looking for joint opportunities in the drilling business in the Middle East. The US-based oilfield services company wants to expand its reach in the drilling business of national oil companies with manufacturing capacities in Saudi Arabia. The global crude production in the Middle East accounts for around 35% of the total production in the world.
According to the president of Weatherford’s well construction global business unit, Dean Bell, “We’re very actively [talking to clients in the Middle East], we have an Eastern Hemisphere president based here in Dubai. We constantly evaluate and discuss opportunities with our customers, anything that we can jointly add value is always things that we can discuss.” Bell, however, did not disclose any specific deals.
Weatherford posts $199 million net loss for Q3 year-on-year
The company posted $199 million net loss for Q3 year-on-year. The Eastern Hemisphere revenues including that of Middle East spiked by 2% and rose to $692 million due to higher sale of a product in Asia, and Continental Europe. As compared to these continents the revenues in the Middle East grew very slowly because of lower services activity. Incidentally, the revenues from Russia also dipped as a result of the unfavorable foreign exchange.
Baker Hughes, an oilfield services provider from the US stated in October this year said that it would purchase a 5% stake in the drilling entity of state-owned National Oil Company in Abu Dhabi for $550 million. As per the market analysis, the drill’s estimated value is $11 billion. Weatherford believes that there has been a modest improvement in the upstream activity at the international level has been monitoring Middle East’s ongoing licensing rounds.
It is because several big national oil companies in the region including Sharjah, Abu Dhabi, Ras Al Khaimah, and Lebanon are wooing investors by offering blocks to those interested in 2018. Bell stated that the company is watching all these companies very closely since the licensing is the edge that will ultimately shift the activity to the next level of exploration venture.
Weatherford completes land drilling operations sale in Kuwait
The company recently completed land drilling operations sale in Kuwait. Weatherford sold 12 drilling rigs for $123 million cash to ADES International Holding Ltd. The company still has to receive additional $12 million cash from the delivery of South Iraq’s two idle land drilling rigs.
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.