'Superman' savours Sangu success

The president of Halliburton Energy Development, Norman Chambers, has been instrumental in defining and implementing his company's ''Contract to Produce'' (CTP) strategy. Based on yet greater integration of operator and contractor effort, he has claimed that this concept could help unburden oil companies and transform marginal field economics. Contrary opinion is that field operators will be reluctant to see their risk-reward territory being shared by contractors wanting to extend their field of interest. An interview with Norman Chambers is reported in which he recalled a strategic review in 1993 which revealed that among oil companies there is a widespread wish to concentrate on their core competencies of finding and selling and that the production function was one capability with which some companies were less than happy. Halliburton can offer engineering, construction and project management capabilities and sub-surface experience and is prepared to share in the reservoir and other risks. The CTP concept is particularly attractive to smaller companies. Halliburton's first significant venture is in the small but strategically important Sangu gasfield offshore Bangladesh with the independent United Kingdom Cairn Energy. Many of the other business opportunities identified for the company to-date are also with small companies. (UK)