newsletter 8 pgs 1-8 - national oilwell varco · newsletter 8 pgs 1-8.ai 1 07 ... recertification...

ON THE WIRE

One C

ompany U

nlimited S

olutions

Issue 7 Autumn 2010

2009

Nati

onal

Oilw

ell V

arco

www.nov.com/ASEPElmar

ON THE WIRE

One C

ompany U

nlimited S

olutions

Issue 8 March 2011


MAJOR DEAL WITH CHINESE OIL COMPANY SECURED

2011

Nati

onal

Oilw

ell V

arco

Following almost 12 months of detailed technical discussions and tough commercial negotiations, the Far East region sales team has secured the highest value contract to be awarded to NOV ASEP Elmar by a company in China.

Under the contract, NOV ASEP Elmar will supply 24 DataTruck B+ truck mounted logging units and five DataSplit C skid mounted logging units to Great Wall Drilling Company in Beijing.

The DataTruck units will be manufactured in NOV ASEP Elmar’s Houston facility and delivered in 2011, while the

DataSplit C skid units will be delivered to Beijing from the Groot-Ammers Netherlands plant. This landmark contract was won in the face of very determined competition from a range of Chinese and international companies.

China represents a key growth market for NOV ASEP Elmar and securing this contract is an important strategic step forward in creating further opportunities in the region.

See article on page two for further information about the oil and gas industry in China.

Pictured: Senior SAS technician, Wong Eng Kwang, servicing a grease module

Newsletter 8 pgs 1-8.ai 1 07/03/2011 14:40:57

V.P. VIEW

David BrebnerVice President of NOV ASEP Elmar

China is the world’s second-largest oil consuming nation and its oil producing capacity is growing fast with no signs of slowing

Key Facts: China

• China consumed 2.252 billion tons of oil equivalent in 2009, which is around 4% more than the United States (The International Energy Agency)

• Chinese oil demand is predicted to grow by 5.9%, or 530,000 barrels a day, rising to 9.58 million barrels a day in 2011 (The US Energy Information Administration)

• Around 85% of China’s overall oil production capacity is onshore, while only 15% is from offshore reserves (The US Energy Information Administration)

• When oil prices rose during 2004 – 2007, China's oil reserves allegedly covered only 21 days of its economy's need. Meantime, reserves in countries such as Japan and the United States were enough for 100 days (China Daily)

• Under a three-year plan (2009-2011) China’s crude oil reserve capacity is estimated to rise to 281 million barrels in 2011 (China Daily)

• Heavy oil accounts for around 60% of China’s oil production in reserve and the Liaohe field, located in the north east, is the largest heavy oil producing field (RigZone)

2011 has got off to a strong start and already shows tremendous promise.

Many of our customers advise of impending requirements due to buoyant market conditions and we anticipate continued growth in the BRIC countries - Brazil, Russia, India and China.

In order to capitalise on these opportunities, it is essential for all of us to work “smarter” rather than “harder”.

New Year, New ChallengesIt is with this philosophy that NOV ASEP Elmar continues to invest in smart, qualified candidates while encouraging the growth and development of our team through providing opportunities for continuous learning.

As the old saying goes “view every day as a school day”.

NOV ASEP Elmar has been delivering equipment to Chinese oilfields for more than 15 years and China continues to be a key market with huge potential for wireline pressure control equipment and winches.

China is a vast area with numerous onshore and offshore fields. NOV ASEP Elmar’s products are operating on many critical wells where high quality equipment is required and business in the region is growing. In particular, there is high demand for wireline trucks, DataSplit containerised winches, SlimLine winches, FlyLine winches and wireline pressure control equipment across the region from the far north east and north

west all the way to the south of China.

The oil industry’s requirement for innovative technology is greater today than it has even been as operators in search of new reserves drill deeper into high temperature and high pressure zones.

China is pushing forward to be self-sufficient and therefore entering a period of rapid production activity to bolster its reserves. NOV ASEP Elmar expects that heightened E&P activity in China will create many more exciting opportunities for its team based in Beijing.



REGIONAL UPDATES


FAR EAST UPDATE BY MURDO BAIN, GENERAL MANAGER, NOV ASEP ELMAR FAR EAST

Award-winning Singapore facilities

Far East Landing the Great Wall Drilling Company

Ho Chun Hua, assembly leader, removing the test fixture from a 3.5” CCSS tool

The Perth TeamUnder the management of Victor Strzina, our Perth based team of 12 employees is playing a vital role in representing NOV ASEP Elmar in Australia by providing a wide range of rental equipment and sales support to our clients who are based in this region.

Far East Landing the Great Wall Drilling Company contract is exciting news for the Far East and it goes without saying that our sales personnel have done an exceptional job helping our region break into this challenging and complex market.

Thank you to all involved for an outstanding team effort. Special credit must go to Francis Ting for his patience and perseverance throughout the competitive tender process.

The Singapore TeamThere are 102 employees in our Singapore office representing a range of Asian nationalities and while English is spoken by many, it is common to hear staff communicate in the languages of Malaysia, China, India and thanks to Rick Doiron, Canada.

To continuously improve communication among the team, we have organised English language lessons which take place at the end of each working day and are very well attended.

Our Singapore team also participates in a range of after work sport and recreational pursuits including bowling and Latin aerobics.

The Beijing TeamOur small but growing Beijing team currently consists of a local office administrator and 2 very busy SAS technicians working with close support from Singapore.

Conscious of the fact that a safe and comfortable work environment is more likely to be an efficient and cost effective work environment, we are continuing our program of enhancements to the Singapore facility.

The shop floor layout has been reorganised in order to improve process flow from receipt of raw material through production, inspection, stores, assembly, testing and shipping. Furthermore, we have commissioned a new in-house phosphating facility to minimise the cost and time involved when subcontracting this service.

October saw the completion and commissioning of the new Singapore pressure test cell facility, constructed in full accordance with the latest NOV ASEP Elmar standards. Subsequently, from January 2011 we will extend the range of services that we provide in Singapore to include servicing and recertification of NOV TOT coiled tubing pressure control equipment.

A well organised facility and the use of modern plant has maintained Singapore’s status as one of our most efficient facilities. There is always room to improve and we have ambitious plans to improve this further during 2011 by increasing the volume of work passing through the facility and continuing to improve production processes and competitive material sourcing.

The Singapore facility has been awarded a prestigious Silver Health and Safety award by the Singapore government and our aim is to achieve the Gold award in 2011.


REGIONAL UPDATES


NETHERLANDS UPDATE BY ALASTAIR ELLIS, GENERAL MANAGER, NOV ASEP ELMAR NETHERLANDS

AMERICAS UPDATE BY GENERAL MANAGER, NOV ASEP ELMAR AMERICAS

Allied takes delivery of first e-drive logging units

The NOV ASEP Elmar volleyball team

Allied engineer using SmartMonitor technology

The NOV ASEP Elmar NL staff association organised a Sinterklaas party for staff and family, with children up to 11 years old invited to celebrate the Sinterklaas tradition by receiving a present from Sinterklaas and the Black Piet assistant.

The birthday of Sinterklaas is an old and

historical story in the Netherlands; the origin of Sinterklaas, born in the year 300 in Turkey, gave presents to poor people and the assistants of Sinterklaas brought presents to children through the chimney.

NOV ASEP Elmar entered a team in the annual Groot-Ammers volleyball association competition.

The team played over two evenings and won the 2nd and 3rd place prizes, which was a fantastic result. I would like to thank the NOV ASEP Elmar team for taking part and congratulate the team on their victory.

NOV ASEP Elmar is now providing CompEx training to customers in the Netherlands. This training programme is designed to ensure that employees working in hazardous areas are trained and assessed to work safely.

The first complete electronic winch package has been delivered to Aker Solutions and the package, labelled NESSIE, is in commissioning stage of the field testing process.

Finally, I would like to congratulate Marco Vermeij on his five year anniversary with NOV ASEP Elmar in the Netherlands and I hope that Marco will be with us for many more years.

Following an outstanding 2010, the Americas has entered 2011 with production and delivery of the e-drive trucks for Allied Wireline progressing well and another exciting truck order underway which will be delivered to China.

We are currently building 24 DataTruck units for the Great Wall Drilling Company in Beijing and first deliveries have already left the United States.

Two of six e-drive trucks for Allied Wireline have been delivered on time, both of which have now successfully completed their first jobs.

I would like to thank Doug Conroy, one of our

SAS service technicians and the current product champion for the e-winch units here in the Americas, for all his hard work and dedication to this project.

We have recently completed our new LRQA audit which now fully encompasses our winch manufacturing capability.

Led by Mike Quinn, the Service After Sales (SAS) team is now fully operational. Our client base in North and South America are very pleased to hear about NOV ASEP

Elmar’s commitment to this initiative and they are enjoying the experience of our enhanced after sales process which offers training, commissioning, spare parts support and warranty handling.

The Pressure Control business in 2010 exceeded expectations with revenues and profits ahead of plan and we are very pleased to be working with a number of new clients for the first time.

Alastair Ellis, general manager, NOV ASEP Elmar Netherlands


REGIONAL UPDATES


ABERDEEN UPDATE BY BRIAN GARDEN, GENERAL MANAGER, NOV ASEP ELMAR UK

MIDDLE EAST UPDATE BY BRIAN KING, GENERAL MANAGER, NOV ASEP ELMAR MIDDLE EAST

NOV ASEP Elmar employees at the SPE/ICoTA Well Intervention Round Table

Sales activity in the Middle East was strong in 2010 and we entered 2011 with a number of exciting new contracts. Since the autumn update, we have secured our largest wireline tools order for a client in Qatar and also picked up a large WPCE order for a project in Iraq.

Our workshop in Dubai has been rearranged to increase module capacity and boost output. This will allow us to manufacture grease and hydraulic control modules at an increased capacity of three per month.

We are experiencing a period of increasing demand for fabrication work with 18 sets of WPCE shipped out to customers in December and January alone.

In November we exhibited at ADIPEC 2010, which was held at the Abu Dhabi National Exhibition Centre (ADNEC). We were pleased with the high level of interest in our technology among current and potential customers.

We extend a warm welcome to Adarsh Sadanandan who has joined our team in Dubai as QHSE Supervisor. Adarsh will be responsible for maintaining our high QHSE standards across operations in the Middle East.

Equipment destined for NOV ASEP Elmar’s new Brazil operation has recently been shipped out to Brazil from Aberdeen. The new and established equipment will allow the Brazil facility to initially manufacture subsea tree crown plugs before moving into perforating gun manufacturing. As we expand our presence in the region throughout 2011, products across all NOV ASEP Elmar lines will be manufactured in Brazil.

Following six months of consecutive zero defect components, we are very pleased

that Cameron Subsea Systems Leeds has awarded NOV ASEP Elmar a bronze preferred supplier certificate. We have been providing equipment to Cameron for many years and being awarded preferred supplier status is testament to the quality and reliability of our technology.

NOV ASEP Elmar exhibited at the SPE/ICoTA European Well InterventionRound Table which was held at the AECC in Aberdeen. Ian Sutherland, NOV ASEP Elmar Europe and Africa regional sales

manager, said after the show: “This event gave us the perfect platform to showcase our latest fully electronic remotely operated well intervention technology to the industry. We are very pleased that we have a number of opportunities to follow up as a direct result of exhibiting at this two day show in Aberdeen.”

In December, the UK was hit by an arctic blast of weather which disrupted travel networks, closed thousands of schools and cut off the north east of Scotland from the rest of the country. It was business as usual for the staff in Aberdeen who braved the adverse weather conditions to come into the office and facilities when safe to travel and the wintery weather gave us the opportunity to take some nice pictures.

Production team with the mast truck built for Schlumberger


TECHNOLOGY UPDATE


Environmentally Friendly Engine

Greater Line Pull

New K-WINCH SlimLine by Ian Sutherland, Europe and Africa Regional Sales Manager

New K-WINCH SlimLine: same comfort, enhanced operation.

The new generation SlimLine

NOV ASEP Elmar’s time and field proven SlimLine units are used by all major service companies across all major onshore and offshore developments worldwide.

Introduced to the market more than 15 years ago, these industry leading units have been developed to meet well servicing challenges, cope with harsh offshore environments and enhance wellbore performance.

The new generation K-WINCH SlimLine represents a major advance from previous generations.

The latest SlimLine, developed by NOV ASEP Elmar’s engineering team, is easy to operate and install, significantly increases line pull and is powered by a new enhanced engine which improves the environmental performance of operations.

NOV ASEP Elmar is continually looking for new ways to design and manufacture environmentally sensitive technology that will also operate in the most hazardous environments.

With that in mind, an efficient, high-performing Caterpillar water-cooled four cylinder diesel engine, capable of providing 54kW (72hp) at 2200rpm, has replaced the Iveco diesel engine used in earlier SlimLines.

The new SlimLine is capable of performing more difficult, heavy duty tasks. Its maximum load is 8,000kg, which is 500kg more than past models, making it the largest line pull commercially available anywhere in the world.

New Short Single Drum SlimLine - Compact with a Minimal Deck Footprint

NOV ASEP Elmar has developed a special compact version of the SlimLine for operations where a minimal deck footprint is important.

The first compact SlimLine with a single drum was developed for Halliburton, and Expro has also taken delivery of two units.

It has been designed for the North Sea market where space on mature infrastructure is often limited.


GLOBAL HR UPDATE


NOV ASEP Elmar has recently implemented a new online payroll system to make it easier for employees to manage aspects of their employment including payslips and benefits.

Employees can now view and print their payslips online by logging onto the system through the internet or at a purpose built terminal within NOV ASEP Elmar facilities in the UK.

Features of the new payroll system

• View and print previous payslips, which allows employees to check records or provide evidence of earnings if necessary.

• View a detailed breakdown of all employee benefits.

Bank holiday update 2011 and 2012

NOV ASEP Elmar has granted all UK employees an additional bank holiday for the Royal Wedding of Prince William and Kate Middleton that will take place on April 29th, 2011.

Employees will also receive an extra bank holiday on 4 June, 2012, for the Queen's Diamond Jubilee to celebrate Her Majesty’s 60 years on the throne.

As business continues to grow, we are actively recruiting new people to join our team. This year NOV ASEP Elmar will more than double its intake of apprentices. It is important that we encourage the development of young talent through our apprentice scheme and we look forward to welcoming our 2011 apprentices later this year.

Please remember that NOV ASEP Elmar has a referral bonus available to any employee who refers a new employee to the company. All vacancies are listed at www.novjobs.co.uk, detailing whether or not the position is eligible for the award.

Middle East New time management system and air ticket update

Last year NOV ASEP Elmar Middle East introduced a new time management system through Kronos.

The automated system allows UAE employees to ‘clock in and clock out’ and we are very pleased that the new system has been running smoothly and efficiently since its introduction in October 2010.

From January 2011 NOV ASEP Elmar employees in the Middle East will have the option to receive their vacation air ticket entitlement paid in cash.

The NOV ASEP Elmar cycle to work scheme has had another surge in people opting to take advantage of its savings.

Many employees joined the scheme pre and post Christmas and almost all vouchers have been issued, which employees have used to purchase bikes.

Alan Smith, who was one of the first employees to take part in the Cycle to Work scheme

Ian Milne, service and rental supervisor, working at NOV ASEP Elmar’s Westhill manufacturing facility

Double intake of apprentices More staff cycling to work

UK

NetherlandsWorks council on the way

In the Netherlands, works councils are a popular forum for employees to represent their interests in the workplace. Following consultations with employees, NOV ASEP Elmar Netherlands has decided to introduce a works council in 2011.

The main role of the works council is to contribute to the decision making process for labour related matters. These include rules on working hours and holidays, payment systems and job evaluation schemes, health and safety at work and works rules.

Employees are excited about being part of the new council and we look forward to establishing the body this year.

Russia and CISNew employee handbook

The HR department in Russia is developing an employee handbook to provide employees with useful information about their employment at NOV ASEP Elmar. The handbook will be distributed to employees in Russia on 1 April 2011 and employees in Belarus will receive the handbook on 1 July 2011.

Employment contracts and job descriptions for employees in Belarus are currently written in Russian, which is difficult for those who are not fluent in Russian to understand. Therefore, all contracts and job descriptions will soon be available in English after the translation process is complete. This will make it quicker and easier for management and British expats to understand.


EMPLOYEE PROFILEManufacturing Locations

NOV ASEP Elmar - UKTel: +44 1224 740261E-mail: [email protected]

NOV ASEP Elmar - NetherlandsTel: +31 184 608 700E-mail: [email protected]

NOV ASEP Elmar - AmericasTel: +1 713 983 9281E-mail: [email protected]

NOV ASEP Elmar - Middle EastTel: +971 4 883 5910E-mail: [email protected]

NOV ASEP Elmar - SingaporeTel: +65 6546 0928E-mail: [email protected]

Regional Sales, Rental & Service Locations

Veracruz, Mexico Tel: +52 229 937 2890E-mail: [email protected]

Perth, AustraliaTel: +61 8 9456 0999E-mail: [email protected] -

Macaé, BrazilTel: +55 22 2773 3328E-mail: [email protected]

Representative Offices

Edmonton, Canada Tel: +1 780 986 6063

Bogota, ColombiaTel: +57 1602 0414

Moscow, FSUTel: +7 495 258 1473

Istanbul, TurkeyTel: +90 262 679 0500

Louisiana, USATel: +1 337 839 0024 ext 201

Beijing, ChinaTel: +86 10 8485 1973

Kuala Lumpur, MalaysiaTel: +60 139 318 869

Fidmash, Minsk, BelarusTel: +375 17 298 24 11

EMPLOYEE PROFILEManufacturing Locations

NOV ASEP Elmar - UKTel: +44 1224 740261E-mail: [email protected]

NOV ASEP Elmar - NetherlandsTel: +31 184 608 700E-mail: [email protected]

NOV ASEP Elmar - AmericasTel: +1 713 983 9281E-mail: [email protected]

NOV ASEP Elmar - Middle EastTel: +971 4 810 0100 E-mail: [email protected]

NOV ASEP Elmar - SingaporeTel: +65 6546 0928E-mail: [email protected]

Regional Sales, Rental & Service Locations

Veracruz, Mexico Tel: +52 229 937 2890E-mail: [email protected]

Perth, AustraliaTel: +61 8 9456 0999E-mail: [email protected] -

Macaé, BrazilTel: +55 22 2773 3328E-mail: [email protected]

Representative Offices

Edmonton, Canada Tel: +1 780 980 6648

Bogota, ColombiaTel: +57 1602 0414

Moscow, FSUTel: +7 495 258 1473

Istanbul, TurkeyTel: +90 262 679 0500

Louisiana, USATel: +1 337 839 0024 ext 201

Beijing, ChinaTel: +86 10 8485 1973

Fidmash, Minsk, BelarusTel: +375 17 298 24 11


NAME: Keith Henderson

JOB TITLE: Senior Sales Engineer – Wireline Winches, Houston, USA

QUALIFICATIONS: BA (Hons) Robert Gordon’s Institute of Technology, Aberdeen, UK

GETTING THERE: I began working life at a family owned truck dealership in the UK before going to college. I joined Elmar in 1984 to work on the workshop floor and progressed to introduce the first ever CNC machine within the Company. I was appointed as Production Manager in 1990 after helping to specify and implement the ERP / MRP system called Chameleon, still used within the Company today but now known as Sage.

After 14 years with Elmar I moved to Groot-Ammers in Holland to take up a position as Sales Manager with ASEP for seven years, then moved to the same position at the ASEP manufacturing facility in Houston for the past seven years where I have been selling mainly truck based wireline units to a completely new client base.

WHAT ROLE DOES YOUR DEPARTMENT PLAY WITHIN THE COMPANY? The face of the Company for the client. Customers around the world rely heavily on our experience to ensure the equipment they want is specified correctly and economically from normally very minimal initial specifications. After receiving an order we need to be able to clearly translate these requirements to Engineering and Manufacturing.

BEST BITS OF YOUR JOB: Speaking with clients to get a better understanding of their needs. I have just returned from meeting customers in Beijing, Singapore and Jakarta, and although I am generally very detailed, emails can lose the message. I was able to discuss and explain our equipment far better face to face and actually close on some orders.

WORST BITS OF YOUR JOB: It can be frustrating when competitors try to offer lower quality, less innovative copies of our equipment using very old technologies and designs. Clients cannot always see these things and decide to purchase based on a very low price differential and I often see the look of regret on their face when they tour our facility in Houston.

IN MY SPARE TIME: Spare time is at a premium but Houston golf courses get visited regularly, squash court visits are less regular. I enjoy a local classic car show on Saturday nights with about 400 cars attending bringing my restored 1970 Beetle along and hopefully the 1961 Jaguar MK 2 I bought to restore will get there sometime.

FUTURE AMBITIONS: The NOV organisation may provide some options for growth. Otherwise to continue to increase our market share of wireline trucks and skids throughout the World and help try to reduce manufacturing costs using past experience.

ADVICE TO OTHERS: All large complicated projects are only a set of small simple projects. Also, the sweet taste of a good deal is maintained only when a quality product is delivered.


newsletter 8 pgs 1-8 - national oilwell varco · newsletter 8 pgs 1-8.ai 1 07 ... recertification...

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