LONDON, Feb. 19 (UPI) -- In a rare win for the upstream energy sector, British company Cluff Natural Resources said Friday it extended a North Sea agreement with Halliburton.
Cluff said it extended its agreement with Halliburton for work in the southern waters of the North Sea for another two years. The company said it would work with the services company on the development of as many as five natural gas fields in the region.
"Halliburton is one of the world's largest providers of products and services to the energy industry and its expertise and capabilities offer our company the opportunity to accelerate the development of our assets," CEO Algy Cluff said in a statement.
The fields in question are located near the Breagh gas field in the North Sea and close to existing assets in Cluff's portfolio. The British government signed off on operational plans for the Breagh field in 2013. Average production through 2018 should settle at 38 billion cubic feet of natural gas per day.
The agreement comes as the North Sea oil and gas sector is facing declines. British energy company BP said this year North Sea operations would be the focus of some of the headcount reductions deemed necessary to remain competitive in a weakened energy sector.
Halliburton, which provides services to the drilling and production side of the energy sector, reported a $28 million loss for the fourth quarter, against a profit from the previous year's quarter of $901 million. Total revenue was down 9 percent.
Halliburton had no comment on the extended agreement in the North Sea.