Reuters: Market News: Core Labs says Brazil tough place for oil services

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Core Labs says Brazil tough place for oil services Mar 29th 2012, 00:32 NEW ORLEANS, March 28 | Wed Mar 28, 2012 8:32pm EDT NEW ORLEANS, March 28 (Reuters) - Core Laboratories, an oilfield services company that specializes in boosting the output of wells, said on Wednesday it was consciously not invested in the red-hot Brazilian energy industry because it was too tough to make money there. Addressing a noticeable gap in its offices around the world, executives from Amsterdam-based Core Labs said it was no accident their map was missing a dot in Brazil. "We choose not to be there because we will not get a good return in today's market there," Chief Financial Officer Richard Bergmark told the Howard Weil Energy Conference in New Orleans. Chief Executive David Demshur explained after the speech that the tax regime and stringent requirements for locally produced content were the main challenges, and expected to see some of his rivals leave the country eventually. "If I were one of the big four, I wouldn't be there," Demshur said, referring to Schlumberger, Halliburton Co , Baker Hughes Inc and Weatherford. Asked about the world's spare capacity of oil, as Core Labs does work for some of the world's biggest oil producers, Demshur said: "We don't think there is spare," adding that he could not see where the incremental production would come from.

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