Drilling for black gold

Varel International

Varel International’s Jim Nixon lifts the lid on the challenges of supplying drill bits to the strict requirements of the Middle East and North Africa market.

O&G. Where do you see the oilfield supply business headed in the Middle East and North Africa region (MENA)?
Jim Nixon. The MENA areas are of great importance to the ongoing business of Varel as our company provides both roller cone and PDC drill bits to operators throughout this region. We have worked diligently over the past few years to ramp up our service and support functions in order to increase our presence in the region. Our growth efforts also included placing a regional management and engineering office in Abu Dhabi. We believe this region demands the attention of any growth oriented supply company. We foresee the activity, in this area of proven hydrocarbon resources, continuing to command an increased commitment from the global supply industry.

O&G. How are you structured in MENA?
JN. The Eastern Hemisphere operations are run from Varel Europe, based in Pau, France. Our activities in Algeria are also directly managed from Pau. We strive to keep as much of the design, development, and drill bit production work we do close to the region, for our customers’ benefit. We perform a great deal of rock analysis work from Pau, allowing customers to gain the greatest amount of value and efficiency from their use of Varel products. Our Abu Dhabi office and other satellite country offices provide for direct, on-the-ground service and support to local drilling operations. Areas of the Middle East where we are active include the UAE, Saudi Arabia, Kuwait, Egypt, Qatar and Oman. Additionally, we have begun to provide product into Iraq.

The Varel approach is to obtain the best available local representation for our products. We want to have knowledgeable personnel on the ground – those who know the area and the conditions that operators are dealing with everyday. Our network then assists our field staff by operating as a support mechanism with engineering and management tools available in both France and the US.

O&G. What does it take to succeed in the MENA region?
JN. Obviously, a company needs to be service-oriented, hence our efforts at increasing and supporting this function in the region. Beyond this, a company must have competitive products that meet the local needs. Casing programmes in the Middle East frequently require very large diameter roller cone drill bits in the top hole and Varel is one of only a few manufacturers of 34-inch and 36-inch drill bits. Likewise, there are many applications that present hard and abrasive drilling; these applications typically require specialised diamond and PDC bits which our Pau operation is well suited to deliver.

Logistics are also incredibly important in MENA operations. A product must be delivered to the customer in a timely manner, and it must be done consistently in order to gain the trust that builds a long-term relationship. Our office in Abu Dhabi was set up in part to increase our ability to manage logistics throughout the region. Lastly, it is vital that a company be ready to take customer input and their requirements seriously. More importantly, companies have to be ready to act and to fulfill those requirements. The diversity of application challenges in MENA does not allow for an assembly line approach. You have to be prepared to quickly deliver custom, fit-for-purpose solutions for individual customer needs.

Jim Nixon is the President and CEO of Texas-based Varel International, the largest independent drill bit supplier to the oil & gas and mining industries. Nixon, who has more than 23 years of drilling experience, holds an ONC in Mechanical Engineering and The City and Guilds of London Institute full technician’s certificate in Production Engineering, both from Stow College of Engineering in Glasgow, Scotland. For more information, visit www.varelintl.com.