Halliburton’s new strategic partnership with PETRONAS in Suriname marks the beginning of the quieter and more important part of developing oil resources (upstream) — the planning, integration, and execution phases. Once a successful drilling program has been completed, it is necessary to convert that discovery into something called “development-ready” status.
Development: A condition of a discovery that may be developed into a producing property
In recent years, Suriname has become one of the most exciting areas of the world regarding offshore exploration. Successes in the area have created many opportunities to develop previously discovered fields. However, as operators transition their exploration efforts into actual development programs, they face common challenges associated with converting subsurface knowledge into effective drilling, well construction, and execution prior to the start-up of commercial production.
With this background in mind, Halliburton announced today that it has entered into a strategic collaboration agreement with PETRONAS Suriname Exploration & Production BV, which also includes offshore drilling contractor Valaris, to assist Petronas in the development of its assets located offshore Suriname.
In addition to PETRONAS and Valaris, Halliburton will join this collaborative effort to provide integrated solutions for the development of these assets. The goal of this collaborative effort is to improve both readiness and execution performance during the entire development life cycle.
Unlike traditional agreements that focus solely on specific products/services or discrete contractual commitments, this collaborative effort was structured to link planning decisions made early in the project with the eventual operational results of those same decisions.
The primary objective of this collaborative effort is to provide early integration
Halliburton’s subsurface and well construction expertise will be combined with PETRONAS’ local basin expertise and Valaris’ offshore drilling experience to form a cohesive project structure from initial conceptualization through final execution.
This cooperative approach will integrate subsurface evaluations and field development plans with digital well construction processes, thereby allowing project participants to continuously monitor and evaluate the status of each technical and operational activity. According to Halliburton, this level of integration will enable more informed decision-making, reduce execution risks, and ensure that project performance remains consistent throughout the duration of development activities.
A departure from traditional project delivery
Furthermore, the collaborative nature of this agreement represents a fundamental departure from the traditional sequential nature of project delivery; instead, it supports coordinated delivery approaches that are becoming increasingly popular in complex offshore environments.
The timing of this agreement could not be more opportune for Petronas
While some of Suriname’s offshore acreage has been evaluated through various forms of appraisal activities, much of this acreage now appears to have reached a point in time where clear development pathways exist.
Therefore, the need for cooperation among operators, drilling contractors, and service providers becomes increasingly important to expedite timelines between investment decisions and commercial production while controlling cost escalations – issues that have adversely affected numerous global offshore projects.
Ultimately, by linking planning disciplines with execution disciplines early in the development process, the collaboration should maximize long-term asset values as opposed to optimizing individual project phases. A broader implication exists for Halliburton’s overall strategy based upon this agreement.
The agreement demonstrates their commitment to early engagement with customers and lifecycle integration. According to them, the collaboration represents PETRONAS Suriname’s confidence in establishing execution readiness early in the development process and maintaining quality delivery throughout development.
Increasingly, service companies like Halliburton are being requested to contribute more to the development process, specifically not only as execution partners but also as co-developers of development strategies for large capital-intensive offshore projects. This agreement clearly illustrates that trend. Ultimately, the agreement between Halliburton and PETRONAS signifies a movement from exploration successes towards disciplined development planning in Suriname’s offshore environment.
