SAN FRANCISCO, March 25 (Reuters) - Halliburton Co HAL.N has had its contract with Salym Petroleum Development NV in Western Siberia extended by four years, in a deal worth about $100 million, the oilfield services company said on Wednesday.
It is a welcome piece of positive news out of the region, which has seen particularly big cuts to spending by oil and gas companies hammered by the slump in energy prices.
The contract with Salym, a joint venture between Sibir Energy Plc SBE.L and Royal Dutch Shell Plc RDSa.L, is for technical services in drilling 400 S-shaped wells, plus other directional and extended-reach wells, at an average depth of 2,600 meters (8,500 feet), Halliburton said.
The Houston-based company has been providing services for the past three years in Salym’s fields, which are 120 kilometers (75 miles) southwest of the city of Surgut.
Andrew Gould, chief executive of rival Schlumberger Ltd SLB.N, said this week that oilfield services spending in Western Siberia had been hit hard, though he expected it to recover somewhat later this year. (Reporting by Braden Reddall, editing by Gerald E. McCormick)
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