Schlumberger CEO: Oil-Services Indus May See More Consolidation
25 July 2009 - 12:42AM
Dow Jones News
The oil-services industry could see a wave of mergers and
takeovers if the North American market remains depressed during the
second half of 2009, Schlumberger Ltd. (SLB) Chief Executive Andrew
Gould said Friday.
In a second-quarter earnings conference call with analysts, the
executive said that "if North America remains bumping along the
bottom for the next six months, you'll see some consolidation in
the industry."
Gould added that Schlumberger was always "open for a good
opportunity" in terms of acquisitions, but what the company can buy
is "quite limited."
The profits for oil-services companies have been squeezed by a
reduction in drilling and development activity in the wake of lower
energy prices, particularly in North America. Many of the service
companies' clients - the firms that produce and sell oil and gas -
also have pushed to renegotiate service contracts at a lower
price.
Gould added that most contract re-negotiations with its major
clients already have concluded.
"For the major customers, most of the re-negotiations were done
in the first half of the year," he said.
Schlumberger, with principal offices in Houston, Paris and The
Hague, is the world's largest oilfield-services company.
-By Angel Gonzalez, Dow Jones Newswires; 713-547-9214;
angel.gonzalez@dowjones.com
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