Halliburton Final Beta
- 2. Team A Presenters Neil Sinay – Introduction, History, Halliburton as a Global Organization Erik Calderon – Overall strategic global plan, mission, vision, goals Danny Dyer – Opportune regional assessments Matt Ellis – Operational structure, distribution channels Marc Kirkland – Staffing, expansion, market opportunities
- 3. Halliburton History Established in 1919 by Erle P. Halliburton Founded as New Method Oil Well Cementing Company in Oklahoma Purchased Brown & Root, an engineering and construction company, in 1962 Purchased Dresser Industries, a major provider of integrated services and project management for the oil industry, in 1998 Dresser owned M.W. Kellogg, a leader in petroleum refining and petrochemical processing, technology, engineering and construction, since 1988 Revenues reached $13b in 2001, just 3 years after merger $15.3b in 2007
- 4. Products and Services Cementing Pumping and Mixing Equipment Casing Equipment Systems and Software Consulting Information Management Drilling Real Time Services Connectivity Optimal Solutions
- 5. Products and Services Reservoir Testing Net Present Value Estimation Service Tools Drilling Tools Stimulation Tools Retrievable Tools Isolate portions of well for repair Consultant and Supplier
- 6. Halliburton as a Global Organization Halliburton operates in over 70 countries, employing 50,000 people In 2007, the organization set up a dual HQ in Dubai, UAE (while still retaining Houston, TX HQ) Positioning to focus on Eastern Hemisphere expansion Believes in local involvement for sustained local public acceptance Diversified operations to offset negative effects of political and social unrest, terrorism, and war
- 7. Worldwide Proven Reserves PROVEN PETROLEUM Russia #8 China #12 Kazakhstan #17 Norway #18 Azerbaijan #19 India #20 NATURAL GAS Russia #1 Russia surrounded by Arctic Ocean, N. Pac Ocean, Black Sea, Caspian Sea, Bering Sea
- 8. Halliburton’s Vision "To be welcomed as a good corporate neighbor in our communities; to do no harm to the environment; to provide demonstrable social and economic benefits through sustainable relationships, sustainable technology and sustainable sourcing; and to validate our progress through transparency and reporting”
- 9. Global Strategy Entire organization growth in 2007 represents 18% Halliburton has accelerated investment in their people and infrastructure alone with a well-integrated strategy. Halliburton offers competitive, safe and superior quality products and services. Sustainability of Halliburton also depends on how they interact with the world.
- 10. Global Strategy International service intensity grows with reservoir complexity. Building dynamic workforce with the expertise to execute Comprehensive global supply chain Increase financial returns and strong international growth
- 11. Discovery of oil field in Brazil Brazil is one of the most political stable countries in South America Potential location in Rio de Janeiro Brazil’s infrastructure is one of the fastest growing economies (9 th globally) Halliburton in South America
- 12. Business Potential & Competition Brazilian discovery represents 8 billion barrels of light crude oil Each well will generate about $52 million each. Competitors are: Baker Hughes Inc. Schlumberger Limited and Technip
- 13. Regional Stability: Russia Proven Reserves Petroleum: #8 in world Natural Gas: #1 in world Political Democracy since 1993 Constitution Executive, Legislative, and Judicial branches Economic 9 straight years of growth (7% avg annually) Decrease in poverty overall Increase in middle class size, FDI, GDP Concerns about the recent power transfer from Putin to Medvedev
- 14. Halliburton in the Middle East Dubai Headquarters next step in strategic plan Dave Lesar moves to Dubai Strengthen company activities in Middle East, Africa, Asia Pacific and Europe/Eurasia regions Completed work in Iran Working on Oil infrastructure in Iraq Strong market for Halliburton
- 15. Middle East Business Potential Most of the countries have made their money from oil production Market heavily weighted toward oil exploration Qatar will invest over $120 billion in the energy sector over the next 10 years Robust Trade and Investment Framework Action Plans Free Trade Agreements
- 16. Halliburton Operations Operates in over 70 countries Two major business segments Drilling and Evaluation Completion and Production In 2002 company split into 2 independent business units Halliburton Energy Services Group KBR Engineering and Construction Group KBR sold off amid Iraq scandals in 2007
- 17. Halliburton Headquarters Western Based in Houston, TX Regional offices communicate with hemisphere HQ Executive VP and CFO, Mark McCollum heads HQ Eastern Based in Dubai, UAE Regional offices communicate with hemisphere HQ CEO, David Lesar moved to Dubai to head Eastern HQ
- 18. Western Hemisphere Operations Western Hemisphere HQ Houston, TX R + D, Technology Duncan, OK Numerous Small Facilities Manufacturing Facilities Training: Mexico Mexico Texas Brazil 97 U.S. Field Camps Sales Offices Project Offices Bulk Storage Deliver Products, Services, Local Labor and Materials
- 19. Western Hemisphere - Locations North America US Anchorage, AK Bakersfield, CA Denver, CO Oklahoma City, OK Lafayette, LA Houston, TX Canada Calgary, Alberta Mexico Villa Hermosa Ciudad del Carmen Reynosa Carretera Monterrey Latin America Venezuela - Caracas, Maturin, Punta Camacho Colombia - Bogota Ecuador - Quito Argentina - Buenos Aires Brazil - Rio de Janeiro, Macae, Salvador Distribution Channel Structure Short as possible Use local materials if possible All other materials from (2) W. Hemisphere manufacturing facilities
- 20. Eastern Hemisphere Operations Eastern Hemisphere HQ: Dubai, UAE Intl R + D, Technology Pune, India Singapore Numerous Small Facilities Manufacturing Facilities Training Tyumen Russia, Malaysia, Egypt Sales Offices Project Offices Bulk Storage Johor, Malaysia Singapore 133 Field Camps Deliver Products, Services, Local Labor and Materials
- 21. Eastern Hemisphere Locations Africa Algeria, Libya, Egypt, Nigeria, Cameroon, Gabon, Congo, Angola Europe Norway, UK, Spain, France, Netherlands, Germany, Austria, Italy Middle East Saudi Arabia, U.A.E., Oman Asia China, India, Malaysia, Indonesia Oceania Australia
- 22. Western Hemisphere – Major Projects Mexico Bay of Campeche region Services: acidizing acid fracturing water control Nitrogen stimulation Southern Mexico Manage drilling and completion of 58 land wells Brazil Services: Exploration development - testing for high temperature and high pressure environments Papua, New Guinea Services (for next 3 yrs): Drilling and formation evaluation Slickline – Collapsed tube repair Fluids Cementing services Production enhancement
- 23. Western Hemisphere - Recent Acquisitions Jan 2007 Canada: Ultraline Services Co. Solidified Canadian wireline and perforating operations May 2007 NY: Vector Magnetics, LLC Active ranging technology for steam-assisted gravity draining Sep 2007 MN: Geosmith Consulting Group, LLC 3-D computerized topography rendering
- 24. Eastern Major Projects Russia Multiservice contract in Tyumen region Services: drilling fluids waste management cementing drill bits directional drilling logging-while-drilling India Services: deepwater sand control completion technology in 2 offshore fields Malaysia Services: completion products and service to a group of energy companies for next 5 yrs China Services: sand control completions for 200+ wells in China over next 5 yrs Indonesia Services: completion products and services
- 25. Eastern Hemisphere Recent Acquisitions July 2007 UK: PSL Energy Services Eastern Hemisphere provider of process, pipeline, well intervention services Nov 2007 Russia: OOO Burservice Directional drilling services in Russia
- 26. Regional Coverage and Competition Halliburton: China (Beijing), India (Mumbai and New Dehli), Thailand (Bangkok), Vietnam (Ho Chi Minh City), Indonesia (Jakarta), Malaysia (Kuala Lampur), Russia (Moscow), Kazakhstan (Almaty and Atyrau), Azerbaijan (Baku) Competition: Baker Hughes,Schlumberger Moscow, England, Norway, Saudi Arabia, Massachussetts, UK, France, China, Japan, California, Texas
- 27. References Baker Hughes (n.d.). Retrieved June 30, 2008, from http://www.bakerhughesdirect.com/cgi/bhi/security/login.jsp?BV_UseBVCookie=no&Failed_Reason=Invalid+timestamp,+engine+has+been+restarted&com.broadvision.session.new=Yes&Failed_Page=%2fmyHomePage%2fwel CIA World Factbook: Russia (2008, June 19). Retrieved June 29, 2008, from https://www.cia.gov/library/publications/the-world-factbook/geos/rs.html Greatest Oil Reserves by Country, 2006 (n.d.). Retrieved June 30, 2008, from http://www.infoplease.com/ipa/A0872964.html Halliburton Locations (n.d.). Retrieved June 30, 2008, from http://www.halliburton.com/default.aspx?pageid=1278 Schlumberger (n.d.). Retrieved June 30, 2008, from http://www.slb.com/ www.iht.com/articles/2007/11/19/america/19braziloil.pho?page=2 www.jstor.org/pss/445891 www.businessmonitor.com www.hoovers.com/free/co/burn.xhtml?ID=10697?cm_ven=PAID&cm_cat=YHS&cm_ite=halliburton-competitors