U.S. services giant Baker Hughes Incorporated (BHI) – through its subsidiary – has contracted a new state-of-the-art pressure pumping vessel to provide offshore stimulation services to Danish player Maersk Oil in the North Sea.
Known as Blue Orca, the new stimulation vessel is expected to join Baker Hughes’ fleet as the eighth unit upon its completion in late 2013. The company did not divulge details regarding the yard which was building the vessel but revealed the commencement of engineering work on the marine and stimulation systems.
Per Baker Hughes, Blue Orca will provide one of the leading fluid as well as proppant carrying capacities in the world. The vessel – with a provision of offering 15,000 hydraulic horsepower pumping capacity and a capability to pump at rates of over 60 barrels per minute – is to be rated to 15,000 pounds per square inch.
The Blue Orca will join Blue Tarpon and Blue Dolphin – the Baker Hughes' newest additions to the Gulf of Mexico – adapt at supporting offshore completion operations and will be geared up to carry on high-rate and high-volume multi-zone fracturing operations.
Maersk Oil’s principal expertise remains stimulation of long horizontal wells. It also forms the basis for growth for the tight chalk reservoirs dominating Maersk Oil’s portfolio.
Baker Hughes, the world's third-largest oilfield services provider, is favorably positioned with significant improvements in activity levels in both North America and the international regions. The company’s strong portfolio of products and services will help it generate better-than-average results in the domestic market and enable it to further penetrate in the international markets. The company also has a competitive set of technologies, which allows it to pursue deepwater activity in the Gulf of Mexico.
Baker Hughes holds a Zacks # 4 Rank, which is equivalent to a Sell rating for a period of one to three months. Longer term, we maintain our Neutral recommendation. The company faces competition from the heavyweight Schlumberger Ltd. (SLB).
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