The recent Libra field auctions show that Petrobras (PBR 1.43%) 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 (HAL), Baker Hughes (BHI), and Seadrill (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.
