April 15 (Reuters) -

Investors of Halliburton ( HAL ) and Baker Hughes ( BKR )

are likely to pile up pressure on the top U.S. oilfield service

companies to follow the steps of bigger rival SLB in beefing up

their portfolios through deals, industry experts said.

SLB made a nearly $8 billion bid for ChampionX ( CHX )

earlier this month to add new technology offerings, its second

acquisition this year and the biggest purchase since 2016.

"For Halliburton ( HAL ), Baker Hughes ( BKR ), they're going to get

pressure from their investors, (not only) to get scale, but also

fill gaps in their product offering," said Matthew Hale, vice

president for supply chain at consultancy firm Rystad Energy.

The oilfield service industry, which was struggling with

high debt and spending cuts by its customers, is once again back

on its feet, thanks to a recovery in oil prices and demand since

2021.

Industry insiders said improving balance sheets and margins

could help kick-start dealmaking at a smaller scale.

"I don't think there is an urge for Baker or Halliburton ( HAL ) to

seek large acquisitions... I could see them do small

acquisitions that can enhance their portfolios," said Luis Rhi,

director and portfolio manager at Barrow Hanley, an investment

firm that has a 1.75% stake in Halliburton ( HAL ).

The target for Baker Hughes ( BKR ) could be Expro Group Holdings ( XPRO )

, which provides key missing elements to provide

integrated well construction services, Rystad Energy's Hale

wrote in client note.

Halliburton ( HAL ) may want to acquire a company like Archer

to strengthen its artificial lift offering and help

create a differentiated portfolio in the UK and Norway's

platform rig markets, the consultancy said.

Baker Hughes ( BKR ) and Halliburton ( HAL ) declined to respond to requests

for comment, while Expro ( XPRO ) and Archer did not respond.

Smaller industry players are likely to welcome such deals as

it provides scale and makes them more attractive to investors.

"You have a totally different class of larger institutional

investors that only look at the top two or three names in the

space," said Hale. "So you want to be one of those and be

investable to a broader audience."

Dealmaking could also be an option to improve international

and offshore services at a time when North America has seen a

slowdown in drilling activity, experts have said.