Halliburton favourite for Cairn in Rajasthan

Vol 20, PW 17 (18 May 17) Exploration & Production
     

Despite earlier doubts, Cairn India looks serious about boosting Rajasthan output as it prepares to issue an estimated $250m integrated services tender with some convinced Halliburton is destined to win.

On May 8, Cairn invited EoIs with a May 29 submission deadline for sub-surface work, development planning, well-construction, surface facilities development, reservoir management and production optimisation services at its Mangala, Bhagyam and Aishwariya (MBA) fields at RJ-ON-90/1. This is Cairn's first major investment at the block since it merged with parent Vedanta on April 11.

Halliburton has a clear advantage over competitors Schlumberger, Baker Hughes and Weatherford because it previously carried out a similar project for Cairn, drilling 90 firm and six optional wells across the MBA fields over 18 months from August 2014 for $230m. "Halliburton knows the working conditions at the fields," we hear.

"Since 2014-15 this is the first time Cairn has come up with a project (to raise Rajasthan output)." But another source advises us not to underestimate Halliburton's rivals. "Baker and Schlumberger might also put in aggressive offers," he says.

"All three have a full suite of products and services." Baker, whose acquisition by GE is to be completed this month, might yet spring a surprise. "GE has big ambitions for the Indian oilfield services market and wants to move away from its traditional role as an equipment manufacturer," we hear.

"GE's financial strength and Baker's technical capability are a winning combination."

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