Exterran sees 'upcycle' in Latin America

Latin America continues to drive results for oil and gas equipment and service provider Exterran's contract operations and aftermarket services segments.

"Latin America feels like we're at the beginning of a production and midstream upcycle," Girish Saligram, company senior VP, global services, said during Exterran's second quarter presentation on Tuesday.

"We are seeing the first significant operational investments in the Vaca Muerta play [in Argentina] and are expecting to see the first awards soon," according to the executive.

Saligram also pointed to reforms and large investments on the part of IOCs in Brazil that "foretell the need for significant onshore gas processing capacity."

When asked to disclose additional information of a US$150mn-plus, eight-year contract to build, own and operate a compression station for a "major" operator in the region, Exterran CEO Andrew Way said the contract was booked in Bolivia. The customer's name was not disclosed.

The Bolivia project is due to enter service in the latter part of 2019.