WINTER 2009-10No177

Hunting Review; the external house magazine of Hunting PLC 3 Cockspur Street,London SW1Y 5BQ, UKdavid.hunting@hunting.plc.uk Edited by Nick Johnstone and Victoria Bailey, Campaign Marketing. info@campaignpr.comDesigned by Anthony B Ainley MCSD tony@tonyainley.com Produced and printed by Duffield Printers Ltd martyn@duffieldprinters.co.uk

4 Hunting de Mexicoopens for businessLocated in Mexico’s northern industrial heartland, Hunting’s nascent Mexican workshop is adding a new dimension in regional customer support

8 GoingundergroundLondon’s underground system is so iconic it has been referred to on everything from tourist T-shirts to works of art. We chart its history and how it set the style for travel maps across the world

11 Chemical injection systemAfter years of painstaking development, a totally new system for the subsea arena is now being deployed in the world’s ultra deep water projects

14 Companyorganisation chartA snapshot of Hunting PLC, its constituent units, locations and the roles they fulfil in support of the upstream energy sector

26 News from our community

23 Saki season customer partyCoinciding with one of Europe’s largest energy industry gatherings, Hunting Energy exhibited its well intervention capability at Offshore Europe and held a Japanese and Scottish themed customer party to celebrate

Cover The Dojo Drummers - a travelling group of the Mugen Taiko Dojo - perform at Hunting’s party in the Aberdeen Art Gallery

24 Fordoun and Conroe updateHunting’s Fordoun tubular management facility is nearing completion of phase one while ground has been broken for a new site for Drilling Tools in Texas

20 Mother Russia’sexport choicesOvertaking Saudi Arabia in volume of crude oil exports, the Russian Federation has been significantly expanding its oil and gas pipeline network

16 Kicking off in South AfricaAnticipation for the first FIFA World Cup™ Finals ever to be held on African soil is mounting ahead of this summer’s sporting extravaganza

18 Wedge-Lockconnection aheadA major new Hunting product line is coming to market that will help energy operators drill horizontal and highly deviated wells

22 APRS - an industryaccepted technologyHunting’s Annular Pressure Release System has now achieved industry-wide recognition for its ability to equalise pressure differentials in well casing

IN ISSUE 177 WINTER 2009-10

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Tomorrow’s worldWe have recently seen crude oil prices trading around $80 bbl - some 16 times that of natural gas at $5mm Btu. Historically the average differential has been closer to six times more so it will be interesting to watch how this anomaly plays out over the coming year. What we can also observe, even if occasionally masked by political rhetoric, is the continued depletion of the world’s energy resources while viable alternatives are a long way over the horizon. In order to fuel economic recovery and growth, that gap will have to be spanned by new technologies to extract our energy from increasingly difficult to access and complex formations.

Hunting continues to develop the tools and the expertise for the major national and international energy companies whatever their difficulty and wherever their operating needs. We highlight some of these technologies and the expansion stories behind them in this, the 177th issue of the Review.

We take a close look at one of the latest members of the Hunting fold which has developed an innovative chemical injection system (CIS) that will help to open up vital reserves in the high temperature, high pressure subsea environment that is becoming the working norm. National Coupling Company’s acquisition last year has already made a significant addition to our Well Intervention capability and the CIS has great potential. In this same segment we make mention, in our news roundup, of the recent purchase of Welltonic which we welcome into the Hunting family of companies. We also note the continued success and recognition for our annular pressure relief system (APRS). Nearly all the major energy companies have used this technology which is now viewed as the industry standard for mitigation techniques against the collapse of OCTG from annular pressure build up. The OCTG market has had a long regard for the Seal-Lock range of premium threaded connectors, which will now be joined by Wedge-Lock. This is designed specifically for the highly deviated and horizontal drilling market where the ability to withstand the extreme stresses of compression and torque are paramount.

Geographic reach has also been enlarged through the year both by acquisition such as in Indonesia but also through organic growth. Hunting’s new facility in Mexico has broadened our ability to support customers in Central and South America as well as NAFTA countries. Other notable facility projects in this issue encompass the completion of development phase one at Fordoun in Scotland and the preparation of a new site in Conroe Texas.

A changing world requires an innovative culture to succeed and change alongside it. We look forward to the coming year and that journey - and offer best wishes to those who will travel with us.

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Mexicanwave

Hunting de Mexico opens for business

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The third largest city in Mexico, Monterrey is the proud provincial capital for the state of Nuevo Léon. Overlooked by the

5,700ft peaks that form the aptly named Cerro de la Silla, or Saddle Mount, it is located on the northern rim of the Sierra Madre Oriental mountain range.

On a well trodden trade route to San Antonio it lies some 150 miles south of the border from the USA and Texas but now benefits from American markets brought about by the North American Free Trade Agreement (NAFTA). It is further served by major road and rail routes that link it to Mexico City to the south and the Pacific coast to the west. It is easily reached from Tampico on the Gulf of Mexico. Once maintaining the historical ties to Europe, this port now links Monterrey with the global trading community. Modern international airports complete transport access to world markets.

A cool oasisNestled into the mountains, the city was founded by a spring whose water gave respite from the famously hot and arid climate, where daytime temperatures regularly exceed 100ºF, for the duration of the hottest three summer months. In terms of its early history as a settlement, a sparse semi-nomadic population of Chichimecas was displaced by the incoming Europeans during the 16 th century although the small fragile colonial presence did not become permanent until the first officially recorded settlement in 1596. A strong work, community and religious ethic were needed to sustain these early settlers led by Don Diego de Montemayor, who named the city. At first just a dozen or so families eked out a modest existence, while the present day metropolitan area covers well over two thousand square miles and encompasses four and a half million people. This is a footprint and population comparable to Houston. The prodigious growth of the city is encapsulated by a rise in population of two million in the last two decades alone.

Model businesses The geography of the city and disposition of the populace arguably form the basis on which modern Monterrey has become a thriving industrial centre. The tough environment bred an entrepreneurial and self sufficient business community. Locally produced cement and steel led to it becoming the premier Mexican construction materials supplier, which was boosted in the early 20th century by the formation of Compania Fundidora de Fierro y Acerco, a world class steel plant.

The technological know how required to underpin these industries spawned a series of leading academic institutes and social developments in medicine and housing, which were by nature both philanthropic and necessary for growth. Similarly a home-grown brewing industry - Monterrey is home to Cerveceria Cuauhtémoc Moctezuma which produces international beer brands such as Sol and Dos Equis - created clusters of expertise in packaging, glass and steel processing for bottle caps with allied social programmes including private unions. In the 21 st century the city retains a first class reputation for steel processing amongst a portfolio of high tech industries and associated financial services.

Hot spotWith both the desire and need to expand its geographic footprint to service customers in the international energy business, the arrival of

Ricardo Barbosa,Plant Manager

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contractor at the El Sabinal industrial park, to construct a greenfield facility of 25,000sq ft there. The plan was to build a manufacturing workshop, associated office accommodation and additional stabilised land for moving heavy goods. Although the smallest of the facilities in the development, the option for roof line expansion and further land availability was also factored in. Early spring of 2008 saw the design of the facility, layout and negotiation of the construction package completed and capital expenditure approved. With yet another plant ready to move from the architect’s drawing board into reality, project leader Ron Glanders gave the green light for ground to be broken for Hunting de Mexico on April 1, 2008.

Rapid progress Two years from inception, the facility opened for business in March 2009 with Ricardo Barbosa, a lifelong Monterrey resident with considerable experience in the sector, appointed as Plant Manager. Tasked with leading the business, an initial order for 2-Step material was successfully fulfilled, proving the capability of the operators and integrity of the management systems - especially Quality Assurance. An initial workforce of four has now risen to 17 with eight qualified operators, two supervisors and interpreters, and an administration staff led by Financial Controller Jorge Bustamente. The nature of the work has since become more complex and, despite the cyclical dip in the oil and gas service industry, is perfectly poised to take advantage of opportunities presented in both the domestic and international markets, old and new.

A world class facility with state of the art machining capability and a qualified workforce has now embarked on this new commercial venture for Hunting, establishing its first presence in Mexico. The vibrant city of Monterrey builds on the foresight of its inspired industrial forbears, who encouraged the technology clusters and embedded the creative ethos - a legacy that has endured.

Hunting de Mexico would seem like a foregone conclusion but Jim Johnson, the Director responsible for Hunting Energy Services, ensured that the usual meticulous footwork and planning was undertaken. On paper the country has obvious attractions as an inward investment candidate and in early 2007 the decision was taken within Hunting Energy to take this a step further. As well as the NAFTA and a free trade accord with the EU, the Mexican federal government has numerous bilateral agreements with many countries in Central and South America but also the rest of the world.

The question of location within Mexico was answered by the support of the regional government of Nuevo Léon, its geographical position, infrastructure and open business culture. Following initial groundwork by John Feuerstein the investment proposition was assessed in further visits by senior management: Bill Price, Jim Tubbs and Eddie Johnson. One of their first tasks was to assess and make the choice between buying an existing business or finding a new site. By July 2007 a narrow focus on metropolitan Apodaca was agreed - a place where other oil service giants such as Halliburton and Schlumberger had already been established. The aim then was to find somewhere in close proximity to the main highway to the border with the USA and the airport. Further study of available government tax benefits and capability for skills training, completed the human resource

and commercial considerations while the options for location were still being weighed.

Ground breakingBy September the location had been identified and top level agreements had been reached with VYNMESA, a developer and

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The completed facility awaits machine installation...

...and the new machinery being assembled and tested

Getting down to business A brand new facility with state of the art machinery and fully trained staff • Manufacturing: Completion accessories, Slick Line tools and pressure control components • Threading: Hunting premium threads such as Seal-Lock, API Hunting modified, StubAcme and API standard lines• Machining: Turning via six MazakCNC turning machines and one manual lathe, suitable for bars of 3 to 14.7in. Milling with dedicated Mazak milling machine which handles 20 x 20 x 40in bars and 4th axis• Process and finishing: Copper plating, zinc phosphate, manganese phosphate, glass bead blasting and painting, all in house• Quality Assurance: Optical comparator, a full set of gauges for thread inspection and Mic-Trac MT-3000 ensure that Hunting quality remains consistent

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The completed facility awaits machine installation...

...and the new machinery being assembled and tested

Monterrey has a long and proud history of industrial achievement

John Feuerstein, Ricardo Barbosa and Jorge Bustamente

This train is going all stations to Upminster, please mind the closing doors,’ - an often unnoticed announcement that marks the

start of the day for hundreds of busy London commuters as they fall familiarly into the background buzz of the morning rush into work. Indeed, while navigating the crowds, jostling for a seat, reading the newspaper, listening to music or even catching up on a few minutes sleep, one could be forgiven for failing to appreciate the history behind each journey. Not only was the London Underground the first system of its kind in the world, it was also the first to operate electric trains from 1890.

Responsibility for the network has changed hands many times over the years. Originally, the lines of the present London Underground were built by various private companies which, on the creation of the London Passenger Transport Board in 1933, eventually became part of an integrated transport system. Yet it was not recognised as a single entity until 1985, when London Underground Limited was set up by the then Prime Minister Margaret Thatcher. Unofficially known as ‘the Tube’ it finally became a wholly owned subsidiary of Transport for London (TfL) in 2003.

Putting London on the mapRailway construction in the United Kingdom began in the early 19th century and by 1854 six separate railway terminals had been built around the centre of London - a new and effective solution to ease the traffic congestion which had increased in the capital significantly during this period. Fast forward more than 150 years and the London Underground network that greets us today covers 249 miles, 11 lines and 270 stations and has evolved into a far superior system of transport. And all of this is reflected in the network’s map - a design classic.

Instantly recognisable, this iconic topographical design has become part of the essential itinerary for any newcomer wishing to navigate the capital city, while even the most savvy of Londoners can be seen consulting the map for the swiftest route to their destination.

Originally, the various lines were presented geographically, often superimposed onto road maps. This however presented both visual complexities and, more fundamentally, problems of space as the central stations appeared closer together than the outlying stops. The concept behind the modern, stylised Tube map, characterised by its non-geographical layout, originates from the work of Harry Beck. Beck was an electrical

Since its inception London Underground has been at the forefront of several world firsts - including its

iconic passenger map

‘

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engineer who updated and amended the existing, problematic diagram while working at the London Underground Signals Office in the 1930s. Believing that passengers were far more concerned with establishing how to get from one station to another and where to change as easily as possible, rather than seeing a geographically accurate plan, Beck put forward his concept of a full system map which was clear, colourful and easy to understand.

Although his radical proposals were met with initial scepticism from his employers, following its public introduction in 1933, the colour-coded pamphlet became so instantly popular that not only was a large reprint required after just one month, but a template of his illustration has been used on the Tube ever since. The design has also been the inspiration behind many other urban rail and metro maps worldwide, while various bus and transit companies have also developed a similar concept. In 1964, for instance, the New York City Subway system, which also runs separate lines over shared tracks, replaced a map that used only three colours with a map that used a different colour for each line. Beck also produced at least two versions of a diagram for the Paris Metro.

Beck continued to update the Tube map on a freelance basis but by the 1960s, following the appointment of the designer Harold Hutchinson, many changes such as the inclusion of the Victoria and Circle lines, were introduced to the map without his approval. Unsatisfied, Beck fought to regain control of the design by putting forward an even more simplistic plan based on his earlier ideas. When that too was rejected, he accepted defeat - although he continued to create sketches and drawings for the map until his death in 1974.

Cockspur Street

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On the right track:• Each Tube train travels 76,800 miles every year

• Over a billion passengers are carried on the Tube annually

• 45 per cent of the network is in tunnels

• The network has 412 escalators with Angel station boasting the most vertiginous at 197ft, with a vertical rise of 90ft

• Around 13,400 staff are employed on the network

• During the morning commuter peak, Waterloo is the busiest station, with 51,100 people entering it. The busiest station in terms of passengers each year is Victoria with 76 million

• The Underground name first appeared on stations in 1908. LU’s iconic logo, ‘the roundel’ (a red circle crossed by a horizontal blue bar), also appeared in the same year

Mind the gap

Further controversy has surrounded a recently revised edition of the Tube map, which puzzled many with its omission of the River Thames. TfL has disclosed that the decision was based primarily on customer feedback, which suggested that the previous map had become increasingly cluttered, following the continued expansion of the system. ‘By cleaning up the map, we have tried to produce the best possible journey planning tool for our customers, reflecting the principles of Harry Beck’s original and innovative design - simplicity,’ a TfL spokesman confirmed. Nevertheless this alteration has not convinced many travellers who saw the Thames as an easy way to pin point locations and believe its exclusion is disorientating.

Immediately identifiable as a symbol of London, there are many cultural references to the map, including parodies used particularly in advertisements for unrelated products and services. Visitors to the capital can also find available a vast array of accessories which incorporate the map into their design, including various spoof versions which, although at first glance appear identical, substitute each

station or stop with the names of prominent historical figures. The artist Simon Patterson was shortlisted for the Turner Prize in 1996 for his painting, The Great Bear, which remains the most famous of these humorous replicas.

Ghost trainRunning deep below the bustle of the city, at a maximum depth of 221ft, and with stations that have been in use since 1863, it is no wonder that the Tube has a long history of spooky stories which report on the haunting of certain lines. Some of the best known legends include Anne Naylor, a 13-year-old trainee hat maker, who was murdered in 1758 by her trainer and the trainer’s daughter. People claim to hear her cries echoing down Farringdon station from the spot where she died. Since the 1950s, staff at Covent Garden station have reported seeing a tall man in a frock coat, hat and gloves - thought to be the ghost of William Terriss, an actor who was stabbed to death at the nearby Adelphi Theatre in 1897. Following the tragic death of 173 people in its stairway during World War Two, the screams of women and children are allegedly audible from the stairwell and ticket hall of Bethnal Green station.

The eerily named ‘ghost stations’ refer to the

small number of stops which, although once busy, have fallen into disuse over the years. Down Street station for example, which closed in 1932, lies between Green Park and Hyde Park Corner on the Piccadilly Line and was, on rare occasions, where Winston Churchill’s World War Two cabinet meetings were held. Similarly, Brompton Road tube, located between Knightsbridge and South Kensington, was used as a WWII anti-aircraft command centre and maps from the era are displayed on its walls to this day.

Ghost stations are also in high demand as movie locations and the London Underground Film Office handles over 200 requests a month. Although filming has taken place all over the network, the most common location is the disused Aldwych station, which has notably starred in movies such as V for Vendetta and Atonement. The Tube has also been used in many blockbusters including Harry Potter and the Philosopher’s Stone, The Bourne Ultimatum, Love Actually and Die Another Day.

Thanks to the London Transport Museum for lending pictures from its archive. The museum’s latest exhibition Suburbia runs until March 31, 2010.

All pictures including Beck’s map ©Transport for London Collection of London Transport Museum

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The acquisition of National Coupling Company in June 2009 has added significant subsea capability to Hunting Energy Services, a chemical injection

system (CIS) being one of the most exciting developments

Gathering the team

Despite earning a reputation for the design and manufacture of valves and hydraulic couplings and associated technology for the high pressure, high temperature subsea arena, the management team at NCC has long harboured greater ambitions. When President Gary Weathers and Larry Rogers, VP Sales and Marketing, were joined by Dick Watson, VP Engineering, in late 2003 it reunited a team with many years experience of working together. The opportunity arose, with the additional appointment of Ken Oberholz as VP Operations in late 2003, to take the company a step further with the development of its first proprietary subsea system as opposed to sub assembly. With the addition of Rob Smith as Technology Manager to handle the electronics and integration, the team was finally tasked with launching a world beating chemical injection system.

‘It’s not exactly ancient history,’ explains Larry Rogers, ‘but demand has been there ever since we stepped off the shelf,’ by which he refers to the ultra deep waters of 15,000ft and

more that are now becoming the usual working environment in the Gulf of Mexico.

A full review on where NCC could best apply its expertise produced a focus on chemical injection - the process to regulate and optimise flow rate from a producing field. It is at these new depths where costs can rise exponentially and their containment is critical. Considerations, such as the sheer quantity of umbilical line employed, become acute; these form the service lines that connect the production platform to the seabed infrastructure. The cost of this alone can be $100,000 per mile at the factory gate. The host surface platforms typically service subsea installations at long offset distances resulting in complex, longer and therefore more expensive lines.

Rationalising connectivityThe original design objective for the NCC team in this regard was simple: to eliminate as many of the umbilical lines and costs as possible, connect those necessary to the wellheads and carefully meter the chemical injected into each well - since each has a unique requirement.

The CISThe National Coupling Company (NCC) chemical injection system (CIS) is an active flow control system that works through positive displacement metering to deliver multiple chemicals to individual subsea wells at controlled and verifiable injection rates It comprises a double acting cylinder, a stepper motor operated four way valve and an electronic controller The system is available in both dual and single models and utilises an automatic flushing cycle that completely mitigates the need for subsea filtration It is remotely operated and monitored in real time as its electronic controller constantly analyses flow data and automatically adjusts its active valve orifice to accommodate a variety of changing flow parameters

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The important thing here is the metering device which has to report and remotely adjust injection flow over the life of the well. The range in flow and therefore capability of the CIS is known as the ‘turndown ratio’, the differential in flow rate expressed as a simple multiple. Standard industry practice has a turndown ratio of 10:1, which is a little clunky given the extremes at which the operations take place and the marginal costs that remain uncontrolled at that scale.

In comparison the NCC turndown ratio is closer to 3000:1. It is actually qualified to deliver chemicals at an accurate injection rate between 1 and 2,880 gallons per day - easily allowing for a performance range of between 1 gallon per day and 500 gallons per day which is sought by the industry. This is also delivered at a level of accuracy previously not experienced. The injection is controlled to within 5 per cent of the flow set point or 1 per cent of its full scale. It is designed to handle all chemicals under different pressures and without regard to fluid viscosity while being tolerant to contamination. Until now filters have had to be used with very high operating costs. Costs involved in a typical filter change cycle using a remotely operated vehicle (ROV) are in the region of $1m. The NCC system monitors constantly for contamination and automatically initiates a self-flushing cycle when required.

Patient progressDiligently developed to satisfy all the requirements over a long development period - the most difficult and complex of Dick Watson’s career - at times progress was agonisingly slow. This was partly down to scarce resources at NCC, where traditionally they were working with just one engineer, one designer and one programmer. The system also had to be developed out of operating cash flow. Started in 2003, the project had a five year gestation period and was finally launched in 2008. The result however, stands head and shoulders above the alternatives in the market place today. Qualification testing of the system has included well over two and a half million cycles, equivalent to over 100 year’s of service in a fifty gallon per day injection application.

The basic technology for the CIS comes from the pipeline industry and the meter proving world, while leading edge materials had to be tested for critical components, such as the active valve orifice which would have to survive whatever was thrown at it through the lifetime of the well. It was all packaged together - with robust and sophisticated electronics for processing the algorithms - to cope with the vagaries of production and then compete as a system in all the varying conditions.

Other competing methods for delivering chemicals to the wellhead have of course been devised and developed. Some of the more sophisticated examples have been designed for the North Sea where they have typically met the criteria for deep sea applications but have brought their own complexity with their operation. Reliant on filtration for contaminant removal and with a low turndown ratio, they tend to work as bundled service packages rather than as standalone systems. The NCC system brings the advantage of a self contained

unit that integrates into the operator’s well intervention strategy without being reliant on further sub assembly or service interventions for day to day operations.

Early adoptersMarket recognition has started with the deployment of the CIS to Petrobras on its Cascade field on the Walker Ridge Block some 180 miles south of the Louisiana coast. This is a fast track project that is expected to employ other ground breaking technology with what is anticipated to be the world’s deepest floating production storage and offloading facility in 8,000ft of water. After an initial acceptance programme, production is designed to ramp up during the first quarter of 2010 with a development programme designed for forty subsea trees with appropriate chemical injection systems expected for delivery in 2010 and at further staged intervals until full production is achieved in 2011.

The major international oil companies have

Customising test regimes to assure product integrity

Topside umbilical simplification

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been quick to acknowledge the arrival of the new technology and have been swift to recognise the advantages. Exxon, Chevron and BP are currently running their own intricate appraisal programmes and further offshore deployment depending on precise rig scheduling. Individual test cycles have been undertaken for different chemicals in house in Stafford, Texas. Some of the chemicals are volatile, flammable and/or toxic so have to be handled carefully which adds to the complexity of the trials. Further acceptance trials by the international and national oil companies are expected to approve the new technology at new depths in international waters.

Right from the beginning the CIS was designed to fit seamlessly into the customer operation and has a custom designed interface for instant familiarity. Typically the user interface is set up to display operations on the user’s usual control screens, so look and feel are seamless and simple to transfer to the offshore environment. Once installed

no maintenance is required so the interface remains very robust and straight forward.

Having been through many of the acceptance hoops set individually by the major energy companies for the Gulf of Mexico from its home base in Texas, the company is looking to lever the presence of Hunting’s international footprint in all the offshore centres of the world where cost savings and technical advantages are sought.

Dick Watson, Rob Smith and Larry Rogers

The complete unit ready to ship

Hypobaric chamber being installed to fully test every system

Flow testing

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Excellence in Energy Services for over one hundred years

Hunting PLCCorporate head office

www.hunting.plc.uk

•HG Management ServicesManagement (London)

•Huntaven PropertiesProperty, London

•Hunting Knightsbridge HoldingsFinance, London

•Field Aviation CanadaAircraft Engineering, Ontario

Hunting PLC

Publicly quoted holding company

+44 20 7321 0123 - London UK

Hunting PLC USA Corporate Office +1 713 595 2950 - Houston

Hunting PLC is an energy services provider to the world’s leading national and international oil and gas companies. Established in 1874 it is a fully listed public company traded on the London Stock Exchange. The company maintains a corporate office in Houston and is headquartered in London.

The company manufactures and distributes products that make the extraction of oil and gas possible and has licensed partners around the world for proprietary products and its own principal operations in:

Canada | China | Dubai | Holland | Hong Kong | Indonesia Mexico | Singapore | United Kingdom | United States of America

Gibson ShipbrokersShipbroking

www.eagibson.co.uk+44 20 7667 1000London, UK

Services covering:Crude Oil and Products Specialised Tankers LPG and LNG Dry CargoSale & PurchaseOffshoreConsultancy & Research•Hong Kong•Houston•London•Shanghai•Singapore

Hunting Energy Services Well Construction www.hunting-intl.comAmericas +1 281 442 7382Asia Pacific+65 686 16176Europe & Africaº+44 1224 787000Middle East +971 4 886 5796

OCTG, Premium Connections & Manufacturing•Calgary, Canada•Nisku, Canada•Tianjin, China•Velsen-Noord, Holland•Batam, Indonesia•Monterrey, Mexico•Aberdeen, UK•USA - Houma, Louisiana - Marrero, New Orleans, Louisiana - New Iberia, Louisiana - Rankin Road, Houston, Texas

Drilling Tools: Mud Motors,Non Magnetic Drill Collars, Directional Drilling Tools•Nisku, Canada•Dubai, UAE•Grand Junction, Colorado, USA•New Iberia, Louisiana, USA•Oklahoma City, USA•Conroe, Texas, USA•Casper, Wyoming, USA

Excellence in Energy Services for over one hundred years

Hunting Energy Services Well Intervention

www.hunting-intl.com USA, Canada,Central & South America +1 281 209 3356Europe, Africa, Russia & CIS +44 1224 222500Middle East+971 4 886 5796Far East & Australasia +65 6863 0668

Manufacture, sales and service of Slickline, Wireline and Pressure Control Equipment •Jurong, Singapore•Aberdeen, UK - Bridge of Don •Houston, Texas, USA - Rankin Road•Houma, Louisiana, USA

- Capital Boulevard

Subsea: Hydraulic Couplings, Valves & Chemical Injection Systems•National Coupling Company

- Stafford, Texas, USA

Thru-Tubing Downhole Tools & Equipment•Hunting Welltonic - Aberdeen, UK - Aksai, Kazakhstan - Dubai, UAE - Singapore

Hunting Exploration & Productionwww.hunting-intl.com+1 281 363 2406USA Non-Operator•Tenkay Resources

- The Woodlands, Texas, USA

Hunting Energy Services Well Completion

www.hunting-intl.comAmericas +1 281 442 7382Asia Pacific +65 68616176Europe & Africa+44 1224 787000Middle East+971 886 5793 Accessory Manufacturing,Speciality Threading & Advanced Tubular Systems•Calgary, Canada•Tianjin, China•Velsen-Noord, Holland•Batam, Indonesia•Monterrey, Mexico•Jurong, Singapore•Dubai, UAE•Aberdeen, UK

- Badentoy- Fordoun- Montrose

•Houma, Louisiana, USA•Houston, Texas, USA

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•Lafayette, Louisiana, USA •New Iberia, Louisiana, USA

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Top seeds are

South AfricaArgentina

BrazilEngland

GermanyHolland

ItalySpain

This summer’s sporting spectacular is the FIFA World Cup™which is taking place on the continent of

Africa for the first time

Kicking off

Extra time• The Republic of South Africa has nine provinces and three capital cities: Bloemfontein (judicial), Cape Town (legislative) and Pretoria (administrative)• There are 11 recognised languages, but English is used for most official purposes.Football is colloquially referred to as ‘diski’• 30 billion television hits are expected during the entire competition• An estimated 500,000 fans are expected from overseas for the duration of the tournament

The 2008 Beijing Olympics have faded into all but a distant memory and with a couple of years still to go before the world’s

athletes reconvene in London in 2012, the focus this summer falls firmly on football, as the highly anticipated FIFA World Cup kicks off in South Africa in June. Broadcast globally, the World Cup generates attention and discussion on an almost unrivalled scale. Figures show the championship to be the most widely-viewed sporting event in the world and - with an estimated 715.1 million people tuning into the 2006 final in Germany - 2010 promises no less of a sporting spectacle.

Waiting for the whistleSince the tournament began in 1930, this international championship has remained in its current format and has taken place every four years, with the exception of 1942 and 1946 because of World War II. It comprises the all-male national squads of countries which are members of the game’s global governing body, Fédération Internationale de Football Association (FIFA). Before being able to represent their country on an international pitch however, the teams must play each other in the preliminary group stages, which take place during the preceding three years to each championship. Once 32 teams have qualified, the tournament concludes in the FIFA World Cup Finals, during which the competing countries contend for the hallowed Cup, at venues within the host nation.

Of the 18 tournaments that have taken place since 1930, 75 nations have participated, 11 of which have made it to the final. Just seven have won the title. As the only team to have played in all 18, reaching victory a record five times, Brazil is the most successful team in FIFA World Cup history, with its striker Ronaldo Luis Nazário de Lima topping the list as the overall leading

goal scorer to date. Considered by many as the greatest striker in the history of football, Ronaldo has notched up 15 goals in three tournaments. Not far behind however is West Germany’s Gerd Müller, who dribbles in a close second with 14 goals netted in just two championships.

Fever pitch As the host of the 2010 tournament the Republic of South Africa automatically qualifies, although the country’s national team, known as Bafana Bafana (The Boys), has previously only taken part in two FIFA World Cups. Beating both Morocco and Egypt, the vote - a secret ballot taken by the Fédération’s 24 executives - was announced by FIFA President Sepp Blatter in Zurich in May 2004.

South Africa’s bid had been seen from the outset as the frontrunner and was described by the FIFA inspection team as ‘excellent’. It will be the first African country to host the event in FIFA World Cup history. For a country that is so fanatical about football, the quest to get the support from FIFA had become all the more fervent following the huge disappointment of losing out to Germany to host the 2006 event by just a single point.

The nation’s jubilation at success was especially significant following an era of infamous isolation and the historic end of apartheid. In 1976 the suspension of South Africa’s whites-only football association was turned into a full blown exclusion from the Fédération following the violent response of the country’s police to a student uprising. South African football was plunged into a seclusion that lasted 15 years. As apartheid began to dissolve in 1990, reintegration into FIFA soon followed and the foundations, which were once divided along racial lines, established the South

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African Football Association as a single body. Whereas previously some of the country’s most celebrated footballers, such as Jomo ‘the Black Prince’ Sono, were denied the opportunity to demonstrate their skills in the national strip, during the last decade the sport has come to be seen as a mirror for society - a game represented by all races and creeds.

The significance of this new identity is emphasised by the 2010 FIFA World Cup™ Official Emblem, which FIFA has described as, ‘unique, vibrant and dynamic, graphically encapsulating the African continent’ but still, ‘dipping into South Africa’s…colourful heritage for inspiration’.

The energy of the figure captures the country’s inherent enthusiasm and celebration of the game, while the bright background represents the South African flag. Zakumi is the official mascot for this year’s Cup - a leopard with colouring that reflects the players’ home strip and whose name derives from ‘ZA’, the international abbreviation for South Africa, and ‘kumi’ which is the word ten in many African languages.

With a juxtaposition of rugged natural beauty and busy cities, fans travelling to South Africa will be treated to a grand tour of the land, as the nine stadia are located across the country. The Green Point Stadium, situated in Cape Town at the foot of the iconic Table Mountain, and the Port Elizabeth Stadium, which boasts a 40 km stretch of protected beaches nearby, are just two of them.

Football comes home?Eager to finally extinguish the painful memory of the dismal 3-1 defeat to Portugal in Germany 2006, this year England’s ‘Three Lions’ will be going for gold in South Africa. Under new management, a promising record in the qualifying matches and with a talented line up of young stars, hopes for the team have been set high by the thousands of fans who will accompany them to South Africa. However, odds on England’s chances to win the Cup have lengthened considerably since being beaten by Brazil in November 2009. Having not won the tournament since 1966, coach Fabio Capello’s squad finds itself once again under considerable pressure to perform.

Although there is much expectation on the younger players such as Wayne Rooney, it is the world renowned veteran David Beckham who continues to capture the most attention and upon whose abilities most fans rely. As the second most capped England player, this could be Beckham’s last chance to bring the trophy home. But the nation will have to watch and wait until June to see if England really does make it.

Everyone gets in on the act

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Wedge-Lockahead

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Domestic US gas production has witnessed huge changes over the last few years as production from traditional sources

has dropped by as much as 20 per cent to be replaced by what used to be termed ‘unconventional’ sources. This is especially the case for tight gas and a gas shale deposit where the Federal Energy Regulatory Commission (FERC) expects production to double over the next decade until it satisfies a quarter of all US natural gas demand.

Shale playAs technology and pricing points have conspired to change the profile of the formations being worked, it is no wonder that the extraction techniques have also evolved. Thick layers of shale are found in most sedimentary basins but have proved elusive to tap until the development of the Barnett formation in northern Texas was ramped up in 2002 using extensive horizontal drilling and hydraulic fracturing techniques. These have since been put to good use in the Haynesville and Fayetville shale deposits and will have to be further developed to access the Marcellus reserves -

Directionally drilled and horizontal wells continue to test the limits of connection technology while providing the impetus for innovation. The development of Hunting’s Wedge-Lock product line is looking to push these boundaries yet further

broadly speaking the Appalachian region.Of course the practicalities of employing

these techniques bring the construction and completion of the wells into sharp relief. New pressures are encountered in the well bore to ensure the product flows. Highly deviated wells, turning through 90 degrees and bending to access numerous pay zones, generate extreme pressures on the pipe and associated joints. The resulting high torque, high compression environment brings special challenges for the casing and connection community. While development has been accelerated by the shale play, the applications are clearly not limited by geography or formation.

Unsurprisingly it is here that Hunting Energy Services and the premium connection team, with Director of Engineering Doyle Reeves, continue to be at the forefront of the industry, designing new thread forms to meet tomorrow’s challenges. Sustained and intense work has been progressing steadily to produce a major new product line. As with all new Hunting designs, innovations are never unleashed on the market until they have been rigorously assessed in lab and field trials - so the Wedge-Lock series is still being subjected to the highest levels of testing, in the toughest conditions possible.

Perfect sealThe Wedge-Lock design philosophy is to produce a highly competitive design series that has to be operator friendly in a complex work environment. The brief continues to demand a higher performance rating and smaller dimensional envelope than is currently available. The series will be quicker and simpler to deploy with fewer turns from stabbing to power tight. This gives a capability for rotating the casing itself as it is worked into position.

The cost to the customer will be less with advanced manufacturing techniques employed and with improved resistance to damage and galling. The geometry of the wedge and dovetailed thread form essentially allows for a connection with unlimited torque capacity while providing a metal to metal, gas tight seal. The new product line will include the design and development of three configurations:

Qualification testing is nearing completion as the Review went to press for a 5in WLF connection, which will allow as per standard industry guidelines the qualification of 4½ in and 5½ in sizes. The qualification for a larger diameter WLSF should be completed in the 2nd quarter of this year and the design parameters for the WLC version are set to be completed and testing concluded in the second half of next year.

The prospectThe very success of these natural gas recovery techniques must ironically, be partly responsible for the historic low prices and abundant supply currently being enjoyed. This is probably a good thing for power generators and ultimately consumers at this point in the economic cycle, but as the economy turns, the onus will once again be on the operators to find ways to extend production and contain costs. Thanks to the success of advanced drilling techniques and the introduction of Wedge-Lock the industry can look forward to the prospect of achieving a secure, long-term gas supply with Hunting suitably positioned to make this happen.

Doyle Reeves

• The Wedge-Lock Flush (WLF) with integral true flush 60-70 per cent tension efficiency

• The Wedge-Lock Semi Flush (WLSF) with expanded box with 70-80 per cent tension efficiency

• Wedge-Lock Coupled (WLC) with 100 per cent tension efficiency

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The Russian energy sector has always attracted a lot of attention and international publicity. This is not

surprising, given that the Russian Federation has the world’s largest gas reserves and the seventh largest crude oil reserves. For most of this decade Russian oil and gas production was steadily increasing. In 2008 alone, Russia’s oil and gas production was estimated at more than a billion tonnes of oil equivalent or around 15 per cent of the world’s total (Source: BP Statistical Review).

In terms of oil production, it appeared last year that Russian crude output had peaked and was set for a permanent decline. After nearly a decade of relentless growth in crude production from around 6 million b/d in the mid to late 1990s up to 10.1 million b/d in 2007, the country’s output in 2008 fell slightly to 10 million b/d. Declining output from maturing oilfields and restricted access for foreign oil companies to the Russian energy sector had been predominantly blamed for the drop in total production.

In from the coldHowever, there were some other culprits. High mineral extraction taxes and crude export duties levied on oil companies, in combination with plummeting international oil prices in the second half of 2008 contributed to the decline and also led to the drop in drilling activity needed to sustain production at current levels. The government has subsequently reacted by announcing tax breaks in a number of

difficult-to-develop fields. It has also changed the way it calculates crude and oil product duties, making it easier to track changes in international oil prices. In addition, it appears that Russia’s attitude towards foreign energy investment is becoming ‘warmer’, with the government inviting international oil firms to participate in the development of Siberian fields.

As a result, the country’s crude output has started to pick up again. In recent months Russia surprised oil industry observers by ramping up its oil production to around 10.2 million b/d and overtaking Saudi Arabia. A major boost to production was provided by the start-up of the giant Vankor field in East Siberia. The oilfield started pumping at an initial rate of 130,000 b/d, and is expected to peak at 510,000 b/d in 2014. News of the rebound in Russian crude production received very wide publicity; however, some other important developments within the country did not attract as much attention.

Pipeline networkRecently the Russian pipeline monopoly Transneft announced that it has started construction of the Baltic Pipeline System expansion (BTS-2) - the oil pipeline that will run from Yaroslavl (north of Moscow) to a new port at Ust-Luga on the Baltic Sea. The preliminary project costs are estimated at around $4bn. The first stage of the project is expected to be completed by 2012, with initial throughput of 0.6 million b/d. After completing

the second stage, the capacity is projected to reach 1 million b/d. Plans also exist to build a spur from the BTS-2 to feed crude to the Kirishi refinery on the Baltic.

Another important pipeline development has been in the eastern part of Russian territory. According to Transneft, the first stage of the East Siberia Pacific Ocean (ESPO) pipeline from Taishet in East Siberia to Skovorodino was scheduled to go into operation by the end of last year. Until the second stage of the project is completed in 2014-2015, around 600,000 b/d is expected to be pumped through the Taishet - Skovorodino section of the ESPO pipeline. Of this, 300,000 b/d will be delivered by rail to a new Kozmino port, on the Sea of Japan - close to Vladivostok. The remaining 300,000 b/d will be piped to China through the spur currently under construction from the Skovorodino. Once the Skovorodino - Kozmino link is finished, the capacity is planned to reach 1.6 million b/d.

Stepping on the gasIn addition, the Russian Federation is preparing major changes to the existing gas infrastructure. Feasibility studies on the Nord Stream project started in 1997 with plans to develop a gas pipeline running under the Baltic Sea from Russia to north east Germany. The construction of this project is expected to begin in the first half of 2010. The costs are estimated at $7.4bn, with scheduled completion in 2012. The pipeline will have a total capacity of 55 billion cubic metres per year.

The Russian government also has plans to

Exceeding Saudi Arabia in volumes of crude oil exported, Russia has been quietly expanding its energy empire. Gibson Shipbrokers reports

Mother Russia

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UkraineKazakhstan

Samara

Yaroslavi

Mongolia

S.KoreaJapan

Russia

China

Belarus

Romania

1

2Taishet Skovorodino

Kozmino

3

5 4

1 Existing Druzhba Pipeline2 BTS-23 ESPO (1st Stage)4 ESPO (2nd Stage)5 Spur from ESPO into China

Russian Crude ExportsMillion b/d (through Transneft Pipeline System and by Rail) Source: Argus Nefte Transport

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 08 08 08 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09 09 09

Russian Crude ProductionMillion b/d 1995-2009 Source: IEA

11.0

10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

construct a South Stream gas pipeline that will transport Russian gas under the Black Sea. Although this project is still in the planning/assessment stage, some crucial details have already been agreed. The pipeline is intended to cross Bulgaria, Serbia, Hungary, Greece, Austria and Italy. Current plans are for the pipeline to become operational by 2015, with the capacity of up to 63 billion cubic metres per year.

Undoubtedly, these oil and gas infrastructure projects will reshape Russian energy export flows, enabling the country to diversify its market outlets. The Nord Stream and South Stream pipelines will allow Russia not only to increase its gas supplies to Western Europe, but also these will reduce the need to ship Russian gas through former Soviet countries. In terms of the developing oil infrastructure, the opening up of the ESPO pipeline will lead to a massive increase in Russian crude exports to Asian customers; with 300,000 b/d already committed to China over the next 20 years. Similarly, the BTS-2 line will result in greater crude oil exports from the Baltic Sea, although it will be challenging to fill the pipeline to its full capacity. Some additional crude may come from Kazakhstan and some volumes may be redirected from non-Russian Black and Baltic Sea ports. Another possibility is to divert crude from the Druzhba pipeline going directly into Eastern Europe, although this is unlikely as the line is the only direct feed to a number of central European refineries.

Looking east and westFinally, if and when these oil infrastructure projects are completed, Russian crude pipeline capacity will greatly exceed its predicted export volumes. Russian crude production is targeted to rise by 1 million b/d by 2030, while the planned combined capacity of the ESPO and the BTS-2 pipelines is 2.6 million b/d. This excess capacity will enable Russia to switch between its western and eastern export routes in order to maximise its profit margins. In return, potentially changing and unpredictable crude exports from Russian sea ports both in the Atlantic and Pacific basins could lead to greater volatility in tanker markets. A potential opportunity and threat to the maritime community.

RailPipeline

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APRS - an industry accepted methodology

The Marlin oil field in the Gulf of Mexico is a shining example of the successful development of deep offshore reserves and

a jewel in BP’s illustrious crown. But just how close that half a billion dollar project came to ruin, shortly after production started in 1999, is now a history lesson that continues to inform the industry.

A tough lessonWhat happened at Marlin was the result of pushing production technology to the extremes of the operating envelope. With the production casing set in the well bore on what was BP’s most expensive investment at that time, the expectation was that the taps could be turned on and payback commence from a gigantic flow rate of 40,000 barrels per day of oil with associated natural gas production of 250 million cubic feet per day. And this is just what happened - but unfortunately with disastrous consequences. As production rose, so did the temperature in the casing caused by a combination of flow rate and the temperature

of the liquids in the production tubing. Annulus pressure differentials between the casing components increased until the point where failure was inevitable resulting in catastrophic tubular collapse.

The cost of such a failure afforded the development of several technologies including a vacuum tubing used at Marlin - to contain the heat as a thermos flask might - with inevitable additions to cost and complexity for such a project. It is only comparatively recently that a low cost, simple and effective remedy has been made available by Hunting; this has quickly been adopted as the accepted industry methodology for mitigation techniques against the collapse of OCTG due to annular pressure build up.

It looks so simpleThe Hunting Annular Pressure Relief System (APRS) was devised by John Staudt at the initial behest of ExxonMobil and developed further to meet the needs of different, or a variety of, operating environments. Its design

is beautifully simple - a disk with a metal membrane (the size of a US Quarter or UK ten pence piece) finely engineered to burst within a 2 per cent tolerance (or 50psi) of its preset parameters. These can be set to rupture either outwards or inwards to equalise the pressure differential in the tubing annulus. Assembled and sealed in a small disk that protects it from damage or premature rupture in general movement, these are typically set in pairs in easily deployed industry standard tubular subsections.

It is so simpleAPRS is now used in most deepwater fields around the world. While it has shown itself to be incredibly effective, especially in comparison to the alternative technologies that are available, it is the comparative cost which has given virtually all the major international operators, the insurance they require at a highly desirable and affordable premium.

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Celebrating nearly 30 years of strong business and social ties with its Japanese partners, Hunting held its now traditional

Scottish/Japanese themed party as the energy industry poured into Aberdeen for the biennial Offshore Europe last September.

Hunting was one of 1,500 companies exhibiting at the Offshore Europe conference and exhibition, which attracted more than 49,000 attendees including leading energy industry and political figures from around the world. Hunting chose to exhibit to further promote its expanding range of well intervention and pressure control equipment by launching a new interactive product directory. In spite of chastened economic times this was welcomed as indeed were the record number of visitors. The directory, available both online and in CDRom format, provides a comprehensive listing of Hunting’s well intervention products,

Sakiseason

On the eve of Offshore Europe, Hunting’s Aberdeen facility hosted its fifth Scottish and Japanese themed party

complete with technical and deployment information. Features include Hunting’s new, lightweight pressure control product line and the highly successful VariBall™ deployment system for deviated wells.

Timed to coincide with Europe’s biggest upstream oil and gas event, Hunting’s evening for customers and staff was held at the magnificent Aberdeen Art Gallery. The venue was filled to capacity, and all were able to enjoy some Japanese-style hospitality, entertainment and fine Scottish fayre including venison and haggis.

Hunting’s Japanese partners - JFE Steel and Marubeni Itochu Tubulars Europe - were represented by a delegation including Mr Kabatani San, Morioka San and Nagatsuka San. JFE Steel, the world’s largest 13 per cent chrome tubing manufacturer utilises the Hunting Clear-Run Advanced Tubular System to complement its threadform technology.

Hunting’s Japanese connection began in 1980 with the joint development of the FOX premium threaded connection for oilfield tubulars. In addition to being an equity shareholder, Marubeni Itochu undertakes the traditional Japanese trading house role, providing liaison and financing to facilitate pipe supply from Japan.

As guests arrived they were asked to don colourful Japanese ‘happy coats’ - blue for gentlemen and red ones for ladies. Already in the Japanese spirit, the Kagami Wari was then announced - the age old ceremonial for breaking the seal on a barrel of Japan’s signature drink, saki. Served in wooden cups, known as masu, the saki had been specially imported from Japan for the evening. Guests were then treated to the sights and sounds of the taiko - a traditional and highly skilful Japanese drum display, performed by a local group of artists.

Sam McClements, Richard Hunting and Joe Kitney visit the Hunting Offshore Europe stand

Nagatsuka San (Marubeni Itochu), Richard Hunting and Kabatani San (JFE)

Sam McClements in ebullient form

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Fordoun’s transformation continues...

This year Hunting’s Fordoun facility near Aberdeen enters the next chapter in its multi-million pound site redevelopment.

The yard has remained open for business and operational throughout all the changes. So far these have included the purchase of additional land and the development of new concrete hard standing, to replace the old runway. At the same time the old tubular storage areas have been transformed, making them easier, more efficient and raising them to a similar standard to the newly built area. The site now has an OCTG storage capacity of 10 acres comprising 162 x 50ft storage racks. Phase one will conclude with the completion of a new building complex, providing office accommodation and staff welfare facilities scheduled for formal opening in early spring. Phase two begins this summer and will increase OCTG storage with an additional 180 x 50ft racks, creating a supplemental equipment laydown area of 13 acres.

The redevelopment means an expanded range

of services is available to both new and existing customers. One of the prime benefits of this is the integrated services portfolio that Hunting can offer at Fordoun, which reduces customer costs as there is no need to subcontract OCTG services to several vendors. Owning all the cost drivers creates savings both in layered profit margins for each supplier, but also through simplified administration associated with managing one contract instead of several.

Each stage of an operation has been considered to ensure that maximum efficiency is being provided. For example rig prepped material can be slung as soon as it is completed and, with the inspection area focusing solely on rig returns, stock turnaround time is reduced as undamaged backloaded pipe is quickly returned to stock and made immediately available for the next shipment.

The refurbishment of Fordoun means that Hunting can respond efficiently to immediate and unforeseen operational needs such as last minute variations in well design, thus mitigating

cost penalties for customers. Full restocking privileges for unused material ensure that they are removed from billed inventory - again lowering their overall costs.

The types of new services that can now be provided are illustrated by a three year external storage agreement with Venture Production plc. Supplementing its existing tubular contract with Hunting, 12.5 acres of demarcated space is provided with office, warehousing and Venture’s own vehicle access point. As Dave Walker, Material and Logistics Manager for Hunting at Fordoun, says: ‘This new agreement has allowed Hunting to diversify away from casing and tubing handling and move into a variety of equipment management.’ His counterpart at Venture, Stan Beaton, adds: ‘We are delighted with the agreement and see it as an opportunity to work in conjunction with one another, rather than one working for the other.’ It allows the benefits of a world class storage facility to be maximised with onsite craneage and transport links.

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...as work starts at Conroe

Ambitions to grow Hunting Energy’s Drilling Tools operations in the USA have been given a boost. The company

is enlarging its geographical footprint with the latest step towards the Gulf of Mexico as well as Barnett, Eagle Ford, Haynesville and Fayetteville shale formations. A brand new customised mud motor facility is being built at Conroe in Montgomery County, just north of Houston Texas. This will complement the existing rental and service centres in Casper Wyoming, Oklahoma City and Grand Junction Colorado. The localisation of services continues to drive down costs, especially transportation, and allows for a timelier response to the operator. As well as core mud motor activities, the Conroe base will enable the packaging or provision of associated Hunting drilling tools and services specific to local geology and needs.

Ground was broken in November 2009, shortly after the purchase of the 10 acre site had been completed in October. First priorities

were environmental: storm water pollution prevention and control was addressed with the installation of a site drainage system to manage storm water runoff. The image shows this phase of construction.

The location is close to arterial routes for the shale plays north and east of Texas as well as for transport links for the offshore industry via Corpus Christi and the energy hub of Houston. The facility will comprise new offices and a warehouse under 36,000sq ft of roofline on a stabilised yard. The new facility will be in good company with an established cluster of energy service companies in Conroe and a proactive business community. It will equally benefit from a skilled and experienced local workforce.

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Our HuntingCommunity

It’s a century!Ivor Hill, aged 53, who has worked for Hunting Energy Services since 1998, clocked up a century in terms of giving blood to the UK’s National Blood Service last year. Having donated his first pint in December 1974, Ivor is motivated by the thought that someone he knows may one day need a blood transfusion, so he is very willing to help out when the National Blood Service mobile blood unit arrives in Portlethen. At a ceremony attended by the Lord Provost on October 27 last year, Ivor was presented with his 100th donation certificate and awarded a silver bowl and 100th pint pin.

Finn TrophyFor the past 48 years the London Stock Exchange, Lloyds of London and the Baltic Exchange have competed against each other in a yacht race which takes place in the Solent and is hosted by the Island Sailing Club. In 2009 the Baltic Exchange sailed to victory with the help of MD Nigel Richardson’s yacht, Blue Max, and was awarded the magnificent silver Finn Trophy.

The race proved to be an exciting one, with the previously unrehearsed eight-strong team battling fatigue in the first half before pulling together to clinch a win in the second leg. All traces of exhaustion were however extinguished by a sumptuous reception and dinner hosted by the Royal Yacht Squadron.

The Blue Max team consisted of: Nigel Richardson; Tom Podbury (Gibson); Jo Simmonds (Gibson); Tom Dyke (Conoco); Jenny Deyes (Tokyo Marine); Tim Trober (Komrowski); Dilek Korukmez (James Fisher) and Servane Lesegretain (Total). The Gibson sailors would like to extend their gratitude to all involved in the management of this historic race and are already looking forward to participating in next year’s race.

Pensions changesPeter Ergis, Hunting’s Group Pensions Manager, retired from his role on September 30, 2009 after nearly 20 years with the company. We are delighted that he will continue to be a Trustee and adviser to the company. Peter joined Hunting in February 1990 and has made a significant contribution to the management and development of the company’s pension schemes. We should like to thank him for all his efforts and achievements over the years, while wishing him a long and enjoyable retirement.

He is succeeded by Peter Gee, who joined the Pensions Office in November 1991, becoming Pensions Administration Manager and more recently, Deputy Group Pensions Manager.

Appointment of Non Executive DirectorsHunting has two new Non Executive Directors. John Nicholas (pictured left) and John Hofmeister were appointed at a Board Meeting on August 26, 2009. John Nicholas, aged 53, is a British citizen and Fellow of the Association of Chartered Certified Accountants. Formerly the Group Finance Director at Tate & Lyle and Kidde, he is currently also a Non Executive director of Ceres Power Holdings and Rotork and is also a member of the Financial Reporting Review Panel.

John Hofmeister, who is 61, is a US citizen and lives in Houston. He is the founder and Chief Executive Officer of the Washington DC registered, not-for-profit charity Citizens for Affordable Energy and a non-executive director of Lufkin Industries Inc. Mr Hofmeister is also the former President of Shell Oil Company US and a former Group Director of Royal Dutch Shell in The Hague, Netherlands.

The Board would like to thank Hector McFadyen, who retired in September after being an Independent Non Executive Director since 2002, for his valuable contribution to the company and wishes him well for the future.

Welcome WelltonicJust before Christmas Hunting acquired the Welltonic Group of Companies a leading provider of well intervention services for £9m.

Founded in 2001, Welltonic employs around 45 personnel globally with facilities in the UK, Middle East and Asia. The company specialises in developing and producing a wide range of downhole tools to support well intervention projects. Its in-house engineering and design group will encourage further growth and development of Welltonic’s product portfolio through established facilities in Aberdeen, Dubai and Singapore. The acquisition complements Hunting’s existing well intervention wireline operations and strengthens the company’s global geographical presence in this important growth market.

CEO, Dennis Proctor, said: ‘This acquisition is another bolt-on transaction which strengthens our international presence while providing increased exposure to the high margin well intervention market. Welltonic complements our existing activities in what management and wider market commentators believe to be a high growth sector.’

Bon Voyage! Hunting announced the sale of its French operations to FINERGY on 22 December 2009 for a total consideration of £11.0m. The new owners formed a company for that purpose which includes the management team of Hugues Boussion and Pascal Morel. Having joined the Hunting Group in 1938, the company had evolved as a crude oil brokerage and product storage company after WWII to eventually become a holding company for the related businesses of Interpec, Larco, Setmat and Roforge. The team in France has remained staunch friends through respective generations of Hunting management and best wishes are expressed for their continued success as an independent concern.

These pages are for news and events within our family of companies.We’d like to hear more from you. Please e-mail any news items to

david.hunting@hunting.plc.uk

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Newcomers’ receptionHosted by Gibson Shipbrokers’ Managing Director, Nigel Richardson, last year’s newcomer’s reception was held at the Royal Ocean Racing Club - the home of offshore yacht racing. The event, which was the third of its kind, is seen as an opportunity for new employees to both meet and socialise with their immediate colleagues as well as those from other broking and support departments.

Gibson is pleased to have welcomed 15 new employees over the last year, adding to the company’s 140-strong work force. Addressing the audience, Nigel explained how vital Gibson’s longstanding ties with Hunting were to the 116-year-old company’s road to success. Going on to describe Gibson’s plans for the future, Nigel outlined his key objectives as being ‘to expand our market share while establishing a foothold in selected new markets’. This, he explained, ‘will be achieved by both organic growth and acquisition on a global basis’. He added that, through hard work and dedication, newcomers have a great opportunity to be part of Gibson’s success.

Hunting Art Prizes2010 jurors announced

Three distinguished members of America’s national arts community have agreed to serve on the jury for the 2010 Hunting Art Prize. They are: Sarah Cash, Bechhoefer Curator of American Art at the Corcoran Gallery of Art in Washington D.C.; Rita Aida Gonzalez, Assistant Curator of Contemporary Art at the Los Angeles County Museum of Art; and Lorelei Stewart, Director of Gallery 400 at the University of Illinois. This panel will select both the finalists and winner during a two-tiered judging process which begins in January.The $50,000 Hunting Art Prize, which celebrates its 30th anniversary this year, is the largest award in North America for painting and drawing. The deadline for entries closed at the end of November last year and the winner will be announced at a gala event in Houston on May 1.

Boat namingA new boat that will be used to educate and train both school groups and adults in protecting the marine environment was unveiled by Richard Hunting, Chairman of Hunting PLC, in a naming ceremony at Stonehaven’s Harbour Festival in September last year. The acquisition of the vessel - a long running project organised by the Maritime Rescue Institute (MRI) - was made possible by grants from both the Big Lottery Fund and Hunting, which provided the remaining funding of £6,000. In gratitude for the donation the boat has been named Richard Hunting.

The MRI is a registered Scottish charity which provides a 24 hour waterborne search and rescue (SAR) response service for the Kincardineshire Coast. In addition to this the MRI works to advise, train and raise awareness of emergency SAR procedures around the world. The ‘Richard Hunting’ will be dedicated to the MRI’s youth groups, providing key support to its growing education work and maritime courses.

Well Intervention catalogue Hunting is pleased to announce that the second edition of the Wireline and Equipment Catalogue has been published. Although relatively new to the market, the company has been building its Wireline Equipment portfolio for several years - and this has been accelerated since the acquisition of Cromar in 2005. Along with Hunting’s established range of Slickline Tools and Cromar’s well known Pressure Control Equipment, new and innovative products are developing rapidly, including: the VariBall Roller System; EziLoad Stuffing Box; and CPT Heavy Duty Pulling Tool, which all feature within the catalogue.

‘In the Pink’ dayAt the end of October last year, Hunting celebrated ‘In the Pink’ day raising both recognition and much needed funds for Breast Cancer Awareness. Members of staff based at the Badentoy facility were encouraged to come into work wearing either an item of pink or fancy dress as the day was just before Halloween.

In addition to dressing in pink a number of fundraising activities were held including a cake and toffee sale and an air hockey competition, plus ‘Guess the Number of Sweets in the Jar’ and the date of birth of Buttons the monkey.

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Hunting PLC3 Cockspur Street, London SW1Y 5BQ, United KingdomTel +44 (0) 20 7321 0123Fax +44 (0) 20 7839 2072www.hunting.plc.uk

Hunting PLC (USA)24 Waterway, Suite 700, The Woodlands, Houston, Texas 77380, USATel +1 713 595 2950Fax +1 281 907 5075www.hunting-intl.com

Hunting Energy (North America)2 Northpoint Drive, Suite 400, Houston, Texas 77060, USATel +1 281 442 7382Fax +1 281 442 5771www.hunting-intl.com

Hunting Energy (Europe)Badentoy Avenue, Badentoy Park, Porthlethen, Aberdeen AB12 4YBTel +44 (0) 1224 787000 Fax +44 (0) 1224 787100www.hunting-intl.com

Hunting Energy (Asia)34 Benoi Road, Singapore 629901, SingaporeTel +65 (0) 686 16176 Fax +65 (0) 686 15010www.hunting-intl.com

Gibson Shipbrokers16 Ely Place, London EC1P 1HP, United KingdomTel +44 (0) 20 7667 1000Fax +44 (0) 20 7430 0571www.eagibson.co.uk