Shell’s Brazilian Deep-Water Portfolio
Royal Dutch Shell (RDS.A) has started operations on the FPSO (floating production storage offloading) P-66 in the Lula South Field, Santos Basin, Brazil. This is its tenth FPSO in terms of working interest in the Compos and Santos basins. The company also operates two other FPSOs, the BC-10 and the Bijupirá and Salema, in the offshore Brazil region. Thus, offshore Brazil is a vital part of Shell’s robust upstream portfolio.
Why Schlumberger’s Stock Price Is Bearish
So far, Schlumberger (SLB), the largest oilfield equipment and services provider according to market capitalization, has had a sloppy run on Wall Street in 2017. On May 30, 2017, Schlumberger was trading at $68.74, which was ~19% lower than its price at the start of 2017. The VanEck Vectors Oil Services ETF (OIH), an ETF tracking an index of 25 OFS companies, has fallen 24% YTD (year-to-date). Schlumberger accounts for 21% of OIH. The Dow Jones Industrial Average (DJIA-INDEX) has fallen 8.5% YTD.