The recent Libra field auctions show that Petrobras (NYSE:PBR) and the Brazilian government are serious about trying to get this massive field into the development stages. It is estimated that Petrobras and its partners will spend $184 billion over the life of the project. This means one thing: Halliburton (NYSE:HAL), Baker Hughes (NYSE:BHI), and Seadrill (NYSE:SDRL) are very happy companies.
Why these three in particular? Both Halliburton and Baker Hughes have large market shares in the region with multiple-year service contracts already in place. Baker Hughes operates more than 50% of the well stimulation vessels in the offshore market, and Halliburton's eight-year development contracts have plenty of upsell opportunities as new technology develops. To find out why Seadrill's massive rig construction has a lot to do with developments in the Libra field, tune into the video below with Fool.com contributors Tyler Crowe and Aimee Duffy.