Nov. 21 (UPI) -- Forming a partnership across a range of expertise gives drilling service players a leg up for at least five years, mostly Norwegian-focused companies said.
Aker BP, which formed as a result of a tie up with the Norwegian subsidiary of BP, said Tuesday it entered into partnerships with a subsidiary of drilling services company Halliburton, Maersk Drilling, and Odfjell Drilling, which has its headquarters in Oslo.
Maersk, which continues to struggle after last year's market downturn, said the arrangement lets each partner play to its strength.
"With this alliance and the unique integrated well delivery model, we are leveraging our collective experience and capabilities to reduce waste across the value chain," CEO Jørn Madsen said in the joint statement.
Under a five-year agreement lauded as a "one for all, all for one" collaboration, Halliburton will work for Aker BP on activities performed by either Maersk or Odfjell, provided the terms of the contract model are acceptable for each particular license area.
Aker BP's third quarter production was up more than 120 percent from last year, with an average realized price for oil at $55 per barrel. Income of $596 million was 140 percent higher than last year, when it realized a price for oil at $47 per barrel.
Production cost per barrel for the company, however, was more than double the level from last year.
"The drilling and wells alliances will further strengthen our one team approach and enhance integration and productivity along the value chain," Tommy Sigmundstad, a senior vice president at Aker BP, said.
French supermajor Total in August acquired the oil unit of Danish shipping giant A.P. Moller-Maersk for $7.45 billion, taking on $2.5 billion of the debt held by Maersk Oil in the process. Under the deal, Total could be the second-largest offshore operator in northwest Europe, which is the seventh largest oil and gas producing region in the world.
International revenue for Halliburton was $2.3 billion in the third quarter, a 4 percent increase from the previous term.