Media Focus: International giants merge Chinese oil service enterprises ushered in the integration and development opportunities.

The continuous decline in international oil prices has triggered a chain reaction. The curtain of the integration of the oil service market has been opened, and a new round of integration of oil service enterprises has been staged. On the evening of November 17, U.S. oil services giant Halliburton (HAL) agreed to acquire another industry competitor, Baker Hughes (BHI), in the form of cash and stock. The total value of the transaction is $34.6 billion, which is expected to be completed in the second half of 2015. The industry expects that this transaction will change the existing international oil service market competition pattern and bring great momentum to the future integration of the oil service market.

International oil service market enters the best integration time

Halliburton and Baker Hughes are the second and third, respectively, in the oilfield technology services industry, and the combined company's total revenue will exceed that of Schlumberger, the current oil service industry leader. The combined revenue of the two companies in 2013 was $51.8 billion, higher than Schlumberger's $45.3 billion. Halliburton said the result of the merger is a richer product line, global market share and state-of-the-art technology will make the restructured company more competitive. Halliburton is expected to increase cash flow by nearly $2 billion in the first year after the acquisition.

Tang Chengfeng, general manager of Hengtai Aipu, believes that the international oil price has fallen, the stock price of oil service enterprises has generally fallen, and the integration cost between oil service companies has decreased. At this stage, it is the best strategic time for large international oil service companies to complete mergers and acquisitions. The pace of mergers and acquisitions in the internationally renowned oil service industry will be further accelerated, thus leading to a stronger strategist outcome for the strong. As a comprehensive and international oilfield service provider in China, Hengtai Aipu will also lose no time to make good use of the three domestic, international and capital markets to make the company's development more solid and healthy.

Halliburton's acquisition of Baker Hughes is significant in reducing its competitors and going further in increasing its own industry competitiveness. Tang Chengfeng believes that in addition to logging, Halliburton's overall competitiveness is expected to exceed SLB. "HAL does not rule out the possibility of further acquisition of other potential companies ranked in the top 15 in the international oil service market, nor does it rule out the possibility of SLB acquiring other targets." This will trigger a new wave of consolidation in the international oil service market, and it is believed that many unexpected major industry mergers and acquisitions will be further staged.

The industry expects that after HAL completes the acquisition of BHI, the two giants of HAL and SLB will compete fiercely for large projects and large blocks, while for small project blocks, those comprehensive small oil service companies that already have comprehensive geological capabilities will have greater opportunities.

Domestic comprehensive oil service enterprises become a new force to compete with international oil service giants. 

Tang Chengfeng believes that the existing international oil service company's three-part world pattern has been broken, the oil service industry to form a competitive pattern between the two giants how to last? A new round of three-part world oil service international market pattern is bound to be re-established and formed in the next decade or so, I hope our domestic counterparts, to the country and the nation as the overall situation, bravely shoulder this historical trust, unite, with the motherland in mind and the world.

He said: "HAL's acquisition of BHI is a result of the competition with Schlumberger (SLB), which will give birth to a new force in this industry. Small HAL and BHI companies will appear, which once again proves the correctness of Hengtai Aipu's" three plus strategy. Hengtai Aipu will continue to promote the three plus strategy, demarcate its development goals with the height of the industry and the vision of the world, not only to work hard, but also to work hard. The so-called "three plus strategy" means that the main business will be expanded and adjusted from the traditional geophysical and geological software and technical service business to include geophysical and geological software and technical services, oilfield equipment and instrument manufacturing, oilfield engineering and technical services, and oilfield production increase The general contracting of services and production are divided into four main business segments of comprehensive oil and gas field services.

Tang Chengfeng believes that in the future, Hengtai Aipu will seize the opportunity to further develop its core technical advantages of G & G's oilfield exploration and development geological analysis and solutions, create more and larger market space for major engineering and technical services such as oilfield operation and construction, firmly do a good job in oil and gas field production increase general contracting services and production sharing business, conform to the development trend of the international oil and service industry at this stage, and continuously develop and strengthen the strength of the enterprise, and actively seek development by leaps and bounds.

It is not difficult to see that domestic comprehensive oil service enterprises are expected to take advantage of this strategic opportunity period of falling oil prices to promote more and faster integration opportunities in the industry, form a competitive international oil service giant, and lay a more solid oil service technical foundation for national energy security and economic development.

Industry analysts also pointed out that the integration of the international oil service market provides a good opportunity for the deep intervention of domestic oil service enterprises. At the same time, China is promoting the "Chinese version of the Marshall Plan" to encourage domestic enterprises to go out. The combination of international and domestic opportunities will be a rare opportunity for domestic oil service enterprises in a century.

Related links are as follows:

    China Net       http://finance.china.com/fin/xf/201411/20/1892200.html?qq-pf-to=pcqq.c2c

China Net        http://xiaofei.china.com.cn/news/info-11-9-77301.html

NetEase          http://hebei.news.163.com/14/1120/14/ABGIJ552027907QS.html

Securities Star       http://life.stockstar.com/2014/shenghuozixun_11/30565.html

Beijing Network        http://qiye.jinghua.cn/html/sx/2014/1120/114237.html

MSN           http://msn.yokamsn.com/life/mall/2014/1120/3085.html

Huagu Financial Network    http://finance.huagu.com/rdsm/1411/313148.html

China Enterprise News Network http://ny.chinacenn.com/info/nid_164105.html

International Online      http://sd.cri.cn/270/2014/11/20/7s7045.htm

China Youth Network    http://renwu.youth.cn/qnsh/201411/t20141120_6090472.htm

CICC Online     http://news.cnfol.com/chanyejingji/20141120/19510287.shtml

China Economic Net    http://luxury.ce.cn/ppgsnew/pphd/201411/20/t20141120_2106620.shtml