Yahoo Finance Halliburton (HAL) Invites Africa's Companies to Submit EOIs
Halliburton Company HAL, a leading energy service provider, is inviting African businesses to participate in the oil and gas industry. This exciting opportunity allows local companies to showcase their skills and become part of large-scale projects.
This initiative is a big win for Africa. The African Energy Chamber applauded Halliburton's move, highlighting its potential to boost participation from African companies. This move exemplifies how multinational companies can drive local content development even in countries without dedicated local content laws.
How to Get Involved
Companies can submit an Expression of Interest (EOI) to Halliburton. This will help them assess local capabilities and connect businesses with suitable projects. After the submissions, a competitive process will select the best suppliers.
The Benefits of Participation
The EOI covers a wide range of categories supporting oil and gas operations, including equipment repair and operation, supplies like oil, lubricants and tires, lifting materials and welding services and calibration and safety equipment.
The EOI opportunities will also include associated support services such as car rentals, medical clinics, security services, IT hardware, office suppliers and merchandise branding, PPE and safety equipment, transportation, travel agencies and more.
Other categories include logistics, auditing, tax and advisory services, manufacturing, storage and electronics. This encourages participation from companies that are not only directly involved in the oil and gas industry, but also across different economic spectrums.
Additionally, by working with local suppliers, Halliburton gains access to a wider range of expertise and potentially reduces costs.
Halliburton's Commitment to Africa
Halliburton has a long history of working in Africa and is dedicated to supporting local development. Here are some recent examples:
Namibia: Despite Namibia's local content policy still being drafted, Halliburton secured a deepwater drilling contract, demonstrating their proactive approach.
Libya: Halliburton partnered with Honeywell on a multi-billion-dollar project to develop oilfields and a refinery.
Senegal: The company played a key role in the first phase of Sangomar Oilfield Development, creating jobs and collaborating with local service providers.
Nigeria: Halliburton collaborated with Shell on a major gas project, reaching a significant production milestone in 2023.
Impact and Strategic Vision
Value Creation for Clients and Communities: Halliburton's established local content strategy is designed to create value for clients and unlock opportunities for local communities. The EOI initiative highlights this commitment, showcasing how oil service companies can proactively support local content development.
Developing a Competitive and Sustainable Energy Sector
Halliburton's initiative promotes a competitive and sustainable energy sector in Africa. By driving economic growth and market expansion, Halliburton strengthens local capabilities and sets a standard for other companies in the industry.
Conclusion
Halliburton's invitation to local businesses to submit EOIs for supplying goods and services in the oil and gas industry is an important step toward increasing local content and supporting regional economic development. The broad scope of categories and opportunities allows a diverse range of local suppliers to participate, thereby contributing to Africa's sustainable and competitive energy sector.
Zacks Rank and Key Picks
Currently, HAL carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Archrock, Inc. AROC and SM Energy Company SM, eachsporting a Zacks Rank #1 (Strong Buy) and Sunoco LP SUN, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is valued at $3.22 billion. The company currently pays a dividend of 66 cents per share, or 3.20%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Denver, CO-based SM Energy is valued at $5.63 billion. The company currently pays a dividend of 72 cents per share, or 1.47%, on an annual basis.
SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas.
Sunoco is valued at $5.43 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income and the Brownsville terminal expansion will add to its revenue diversification.
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