Business News for the week of 3 February 2014
Baker Hughes introduces flow-assurance solution
3 February 2014—Baker Hughes has announced its commercial release of Sorb Ultra solid inhibitors. Delivered and mixed with the proppant as part of StimPlus™ stimulation treatment, Sorb Ultra inhibitors can minimize the risk of expensive interventions and lost production in offshore wells. The solid substrate on which the inhibitor is applied is engineered to help ensure reliable applications in deepwater environments and can be customized to treat a range of downhole conditions including scale, paraffin, and asphaltene deposition.
Weatherford to cut 7,000 jobs
4 February 2014—Global oilfield service company Weatherford International Ltd. announces that it plans to cut 7,000 jobs by midyear in response to lower than expected earnings in fourth quarter 2013. Weatherford employs 65,000 people worldwide.
In response to the earnings shortfall, Weatherford plans to make its cost base more efficient. The workforce reduction will primarily impact its fixed-support cost base. This reduction will not affect the noncore businesses of Weatherford that have been earmarked for divestiture in 2014; instead, it is designed to lighten the support structure of Weatherford to compensate for the divestiture program.
The workforce reduction is expected to be completed during the first half of 2014, resulting in annualized savings of $500 million, with roughly half of that amount impacting 2014 earnings.
Crude oil leak reported off South Korea
4 February 2014—Nan Zhou Maritime Pte Ltd.'s Wu Yi San tanker collided with a jetty at the Port of Yeosu, causing damage to a pipeline and leaking crude oil into the sea, as reported in OilOnline Weekly News.
The carrier, booked by Royal Dutch Shell, is operated by Ocean Tanker Pte and was hauling Forties crude oil from Hound Point in the North Sea to South Korea. According to Shell, the ship's cargo tanks suffered no damage, and no injuries were reported by crew members.
The amount of crude oil leaked from GS Caltex Corp.'s pipeline has yet to be determined, but the company said the spill had no impact on refinery production. The nature of the pipeline damage and spill are still being investigated, and the Korean coast guard is responding to the incident, Shell said.