CyprusGasNews May 2014 CyprusGasNews for June 2014 | Page 10

Oilfield services leaders
to set up regional base
in Cyprus
By Elias Hazou of Cyprus Mail
Halliburton and Schlumberger, two of the
world’s largest oilfield services companies,
have chosen Cyprus as their base of
operations for the eastern Mediterranean.
The Mail has learned that the two
multinational corporations will sign the relevant agreements with the government this
month.
The Halliburton agreement will likely be
concluded the weekend after the next (May
10 or 11), with Schlumberger putting ink on
paper one or two weeks later.
Gas expert Charles Ellinas, former executive
chairman of the Cyprus National
Hydrocarbons Company, named the two
companies when asked by the Mail about
local press reports suggesting two
multinationals were about to set up shop
here.
He said Halliburton in particular have been
looking to rent land for their base of
operations in the Aradippou/Larnaca area,
close to the Larnaca harbour and the airport.
Halliburton provides drilling services and gear
for companies prospecting for hydrocarbons.
Their base in Cyprus will cover the entire East
Mediterranean, which is expected to become
a hotbed of exploration activity in the years to
come.
“Halliburton estimates that over the next few
years around 50 to 60 new wells are going
to be drilled in the East Med. We’re talking

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about Israel, Cyprus, and Lebanon. Supposing
that drilling costs are anywhere from $5bn to
$7bn, should Halliburton get half those
contracts, it’s well worth it for them,” Ellinas said.
The island’s political stability is the chief reason
why Schlumberger and Halliburton have picked
Cyprus as the location for their regional base of
operations.
“It makes more sense to set up shop here rather
than, say, Lebanon or Egypt,” said Ellinas. “This
is a big deal for us.”
Halliburton’s activities here would consist of
storing their drilling gear and opening up offices.
“Once they’re up and running, they’d start bringing in their equipment. In addition to storage
space, the gear would have to be serviced, the
company would need supplies etc. This is where
local companies come in, providing support
services.”
And, according to Ellinas, Halliburton, which
operate in more than 80 countries, tend to set up
management teams but then hire locals to do the
work.
Over the course of their operation here, the US
corporation could thus hire and train hundreds of
locals, he said.
Schlumberger, arguably the world’s largest
oilfield services company, has its principal offices
located in Houston, Paris, and the Hague. In the