Schoeller banks on drilling rise for 2014

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Austria’s Schoeller Bleckmann Oilfield Equipment expects 2014 to be a good year as stable oil prices drive growth in deepwater drilling.

Gerald Grohmann, chief executive of the Vienna listed firm said it was benefiting from increased demand for advanced oil production technology and from rising crude oil prices.

“Orders have picked up,” Mr Grohmann said in an interview in a German newspaper.

More than a decade of high oil prices, combined with restrictions in oil-rich places such as the Middle East, have made deeper subsea reservoirs in Brazil, the Gulf of Mexico and the North Sea increasingly attractive for major companies, boosting demand for speciality equipment.

Schoeller Bleckmann, a maker of precision parts for the oil field service industry, last month won a contract worth £9million over two years to supply downhole circulation tools to Brazil’s Petrobras.

Mr Grohmann said that oil companies would remain willing to spend on modern technology as long as oil prices were high.