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Halliburton secures Namibia offshore drilling contract

EditorNatashya Angelica
Published 24/04/2024, 18:24

WINDHOEK - Halliburton Company (NYSE: NYSE:HAL), a global energy services firm, announced today it has secured a contract from Rhino Resources Ltd. to conduct a series of deep water well constructions in Namibia. This strategic partnership aims to tap into the potential of the Namibian oil and gas sector, particularly the exploration and appraisal of Block 2914A (PEL 85) in the Orange Basin.

Jean Marc Lopez, Halliburton's senior vice president for Europe, Eurasia, and Sub-Saharan Africa, stated that the collaboration is set to establish a new standard for innovation and economic growth within the industry. Halliburton plans to deliver comprehensive solutions for the construction of the exploration and appraisal wells, along with testing services.

Rhino Resources, a private entity active in African energy exploration, has over ten years of experience in Namibia and holds the operatorship of Block 2914A. The block is situated in a region with several recent discoveries and is in close proximity to other international operators, highlighting its strategic importance.

In late 2022, Rhino Resources undertook a 3D seismic survey that identified multiple viable plays and prospects, confirming the block's potential. The collaboration is also set to emphasize local engagement in Namibia's oil and gas sector, aiming to distribute economic benefits to the local community.

Travis Smithard, CEO of Rhino Resources, expressed enthusiasm for the partnership with Halliburton, highlighting the potential for catalyzing local services and broadening economic influence in Namibia. The operational phase of the project is scheduled to commence in the fourth quarter of 2024, reflecting a commitment to integrating global expertise with local resources to support economic resilience and progress in Namibia's burgeoning energy sector.

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Both Halliburton and Rhino Resources are committed to contributing to the local economy and ensuring the transfer of skills and economic advantages to Namibian communities.

The information for this report is based on a press release statement.

InvestingPro Insights

Amidst the exciting news of Halliburton's (NYSE: HAL) new contract in Namibia, the company's financial health and stock performance offer additional insights for investors. With a market capitalization of $34.17 billion, Halliburton stands as a significant player in the energy services industry.

The company's P/E ratio currently stands at 13.44, which, when adjusted for the last twelve months as of Q1 2024, reflects a slightly lower figure of 12.75. This suggests that the stock might be trading at a reasonable value relative to its earnings.

Investors looking for growth at a reasonable price might find Halliburton's PEG ratio of 0.19 particularly attractive, implying that the stock could be undervalued based on near-term earnings growth projections. Moreover, the company's dividend yield is 1.76%, complemented by a substantial dividend growth of 41.67% over the last twelve months as of Q1 2024, indicating a strong commitment to returning value to shareholders.

Among the various InvestingPro Tips, it's noteworthy that Halliburton has maintained dividend payments for a remarkable 54 consecutive years, showcasing financial stability and reliability for income-focused investors.

Moreover, analysts predict that Halliburton will remain profitable this year, which is consistent with the company's performance over the last twelve months. For those considering a deeper dive into Halliburton's stock, there are 9 additional InvestingPro Tips available, which can be accessed by visiting InvestingPro. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for more exclusive insights.

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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