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WINTER2010/11No179
Hunting Review; the external house magazine of Hunting PLC 3 Cockspur Street,London SW1Y 5BQ, [email protected] Edited by Victoria Bailey and Georgia Langdon, Campaign PR. [email protected] by Anthony B Ainley MCSD [email protected] Produced and printed by Duffield Printers Ltd [email protected]
4 Marshalling MarcellusHunting’s latest facility in Latrobe, Pennsylvania, is situated right at the heart of the strategically important Marcellus Shale play
8 ChinacurrentsChina’s economic rise over the last decade has changed the course of international trade for cargo such as iron ore and coal. Gibson Shipbrokers reports
10 IraqiinterventionHunting Welltonic’s recent assignment in Kurdistan demonstrates how the company’s presence in well intervention is being taken to a global community
12 TravellingleanEmbedding lean manufacturing principles is a journey that provides benefits for both the company’s workforce and to the bottom line
25 News from our community
Cover St James’s Park©Giles Barnard
14 Walking in a winter wonderlandLondon’s Royal Parks have a long history of entertaining everyone from monarchs to the general public - and long nights with cold days provide the perfect setting for festive fun
17 Introducing InnovaHunting’s latest acquisition is a manufacturer of intricate mechanical, electrical and integrated products for use in the energy sector’s harsh environments
23 Tools of the tradeA newly established Hunting Energy Management Services (HEMS) facility is leading the way in drilling equipment rental
20 DecathlondreamLacking energy? Find out how Hunting staff fared when they took part in the 2010 Aberdeen Corporate Decathalon
IN ISSUE 179 WINTER 2010/11
24 Relocation, relocation, relocationThe integration of multiple sites around Aberdeen into two purpose-built facilities will give Hunting Energy Services room for future growth
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Foundations of our futureFor 136 years the Hunting name has been synonymous with promoting the principles of trust and quality. Thanks to these shared values and the economic success of the company we can also add longevity to this list.
Last year marked a seminal year along the company’s growth path. We made our largest ever acquisition with the purchase of electronic manufacturing specialist Innova-Extel. This Houston-based company, now known as Hunting Innova, gives us the opportunity to grow our market presence in the upstream international oil and gas industry through the manufacturing of electronic components which complement Hunting’s existing mechanical capability. The Review’s introduction to Innova is accompanied by an operational case study for Hunting Welltonic, celebrating its first year in the fold and flying the Hunting horn - on this occasion to Iraqi Kurdistan. There is also an opportunity to describe how the company is putting down roots in new locations including Latrobe, PA to address the extraordinary development of the Marcellus natural gas shale basin. The success of these new ventures will be largely dependent on the good name and reputation that has been earned elsewhere. We also look at how the value proposition is constantly reinforced, in this instance through ‘lean’ manufacturing, whose journey will ultimately encompass all company facilities.
Naturally the Hunting brand is not just about equipment supply. Without our loyal and hard-working staff around the world, and the service they provide, our products would mean very little. This issue also includes an expanded section covering what our community has been doing over the last six months. Many staff from Hunting’s Aberdeen facilities joined together to compete in a corporate decathlon
while in the USA the achievements of our chosen corporate charity Oilfield Helping Hands have been recognised with a major oil industry award.
At the start of another decade we wish colleagues, customers and friends a happy and prosperous New Year.
.
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The grand opening of a new regional base for Hunting Drilling Tools
in the northeastern USA is further evidence of
the market appetite for the Hunting brand and
product line
Marshalling Marcellus
4
The United States has recently started developing the largest prospective unconventional gas reserve in the world
due to the discovery of the Marcellus Shale play, in the Appalachian Basin, as a producible field. The Basin covers a 700 mile stretch from Tennessee to New York generally bordering the western flank of the Appalachian Mountains. The proximity of Marcellus to the largest US market for power and heat should lead to a ready outlet for the produced gas at a very competitive price - and cost.
Already there has been a rapid growth in rig counts from an average of forty in 2009 to more than a hundred predicted by the year end. This foreshadows a potential for growth that is greater than any other US shale play. The highest concentrations of wells are in northeast Pennsylvania and the tri-state area of Ohio, West Virginia and Pennsylvania. Most of the rigs are drilling horizontal, rather than directional wells, where pricing is at a premium for drilling tools and mud motors. It is expected that the play will be developed in a manner similar to the Barnett Shale in Texas and the Haynesville Shale in Texas and Louisiana. Well depths are typically 6,000 - 8,000ft for horizontal wells and generally shallower for those fewer vertical wells.
Positioning & locationFollowing a careful study of the market characteristics, southwest Pennsylvania was selected as the best area in which to locate a new Hunting service facility. This places it at the heart of growth in the Marcellus. Most competitors are far to the south in the older fields of the Appalachian Basin broadly located on the I-79 corridor in northern West Virginia. The specific site selected is in Westmoreland County, in the city of Latrobe. It is located approximately forty miles to the east of Pittsburgh under the glide path to the Arnold Palmer regional airport. This facility also serves as a hub for servicing premium connections and well intervention products to a geographic area approximately 8 to 10 times larger than any of the existing service zones. It is also well placed to build a network of local satellite stockists if the market so requires.
The quickest route to market for Hunting tools was to work with the existing directional drilling customers. Several of them have been active in the region already and others had plans to enter. With a local presence it is also possible to access a new regionally specific customer base. There is a definite need to be local since timely turnaround is critical. The main service centre at Casper is 48 hrs away and Oklahoma City is still too much of a stretch for a viable business. However the reputation gained out West, carries over to the East and there is considerable familiarity with the Hunting product line within the local drilling tool community.
Fitting outThe site selected was a 28,296sq ft former tea warehouse that includes 3,296sq ft of office space on a 3.5 acre parcel. The building is expandable to 40,000sq ft, while some initial building improvements and customisation were required. These included electrical service upgrade, bridge crane service, sumps, driveway modifications, locker rooms, air lines and so on. Environmental considerations and good neighbour practices have
led to the installation of a waste liquids collection system, Watermaze processor and evaporator, so that any solid waste products can be disposed of simply and effectively.
Tooling upProvision is made for seventy drilling motors and spare parts plus twenty vibration dampeners and twenty-five drill collars. A stock of 6½ in and 8in mud motors has been transferred to kick start the new facility with suitable adaptations to reconfigure these tools for local purposes. Parts for alternative
configurations include stabilisers of varying diameters, fixed bent housings with varying bends, and bearing housing that is either slick or stabilised. The intention is that the new centre will also have the ability to service Hunting Seal-Lock Wedge and TKC 4040 RTC threading requirements in due course.
A new permanent stock is being purpose built for the directional and horizontal market, where Hunting’s motor technology is greatly improving. The superior performance encourages both the operating and directional companies to use these products. However,
The team at Latrobe
Polishing up for open day
Hunter A Wood II indicating the Marcellus basin
5
since that reputation was garnered for vertical straight wells, there is the need to re-craft that track record in the horizontal market. The directional tools have a higher initial cost than straight hole tools because of the adjustable bent housing and the need for harder wearing carbide coated rotors, instead of chrome ones. Air tends to be used as the medium for drilling which is much tougher on the tools but, together with the carbide, is preferred environmentally. It is also less susceptible to chemical attack, so the total life cost is less by eliminating the recoats. Utilisation is higher since the rotor is not out of service for several months getting recoated.
A more respectful operating approach to the environment is also evident with the introduction of new fracking techniques to reduce environmental impact and assuage fears of water course contamination.
People powerThere is no historic pool of local gas industry expertise to draw from and until recently out-of-state personnel with the experience of other shale plays have been the preferred resource. In the long term this is unsustainable and undesirable. In recognition of the situation local community colleges and universities, amongst them St Vincent’s in Latrobe, are putting in place the appropriate training programmes to satisfy the new industry requirements.
This has begun with the view that the natural gas industry is going to be the regional mainstay, replacing the steel industry which has retired three former generations of workers.
The same community of course also provides a workforce imbued with a conscientious work ethic, familiar with a rigorous approach to safety and quality. It has also to be recognised that, despite the steel heritage, the culture is of strong rural communities, rather than big city individualism, which means residents are used to making things happen from very little. From the executive suite to rig hand there is a ready, willing and able resource. The impact on the local employment profile is going to be considerable. In 2009 it was estimated that in Pennsylvania alone 48,000 new jobs have been created in the natural gas industry, a figure that is set to rise to 175,000 over the next decade. Similar knock on changes are expected in the local infrastructure, which has barely been touched by developments to date.
Welcoming visitors to the grand opening
Mean, clean, lean machines
6
Local history and cultureHunting’s facility is very near to the Arnold Palmer regional airport, itself just south of the original Philadelphia-Pittsburgh Turnpike that links Latrobe and Ligonier, some 10 miles apart. Well-known for flying, as well as his place in the upper echelons of golf, Arnold Palmer is thought of as one of Latrobe’s most famous sons. The two boroughs were once connected by a railway to transport lumber, stone and coal to fuel the burgeoning local steel industry and the developments spawned as a result of that wealth. The line also took passengers and gave access to the Laurel Highlands, a favourite summer retreat for wealthy city industrialists such as the Heinz family and banking dynasties like the Mellons.
Early daysThe natural history of the shale formation goes back some 400 million years, while the human history of permanent settlement in this beautiful corner of Westmoreland County spans little more than 250 years. The British built a fort to establish and protect their westward march at Ligonier in 1758. Defeating a combined force in the French and Indian war this was to prove to be the key to unlocking the hinterland and the strategic fork in the Ohio River 40 miles to the west which was subsequently named Pittsburgh after the then British Secretary of State, William Pitt.
Moving with the timesThe heavily wooded rolling hills are the most westerly outcrops of the Appalachian mountain range with Chestnut Ridge, rising up behind the Hunting plant, being the last before descending to the great plains that pan out until eventually meeting the Rockies.
Ligonier gradually developed, initially as a staging post from the eastern seaboard with a central square that acted as a corral for horses and wagons with local inns and retailers geared to travellers located around it. With the arrival of the railway in 1894 this trade became obsolete and there the story might have ended were it not for the gentrification of the square into the ’Diamond’. With the building of a bandstand, large hotel and up market cluster of shops, the economic pulse of the community was reinvigorated. Various cultural and popular events are staged that continue to attract many visitors today.
The story for Latrobe is similar in that it matured into a compact industrial hub on the main Pennsylvania Railroad at the junction with the Ligonier Valley Railroad. The local brewery gave the town international status as the home of Rolling Rock beer. Steel was the principle agent of growth and without the tenacity and ambition of today’s populace a steady drift in the health of the community might have been expected. It is testament to their working spirit that a vibrancy and willingness to embrace new opportunity is so welcomed and measures put in place to attract and sustain a new industrial generation.
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The major driving force in international trade over the last ten years has been the rapid industrial growth of China.
This initial phase of development was based on domestic iron ore and coal, which were used to make steel and cement to power the building programme of new towns, roads, railways, airports and factories. Low production costs then allowed competitively priced consumer goods to be exported to the rest of the world. However, by 2000, the business model was showing some strain
China currents
China’s economic fortunes and challenges have had a
significant impact on global trade, as research from
Gibson Shipbrokers shows
- the demand for steel started to outstrip production capacity of domestic iron ore.
The first tangible sign for the world market was a rapid increase in iron ore imports at the turn of the last decade. New blast furnaces, which worked more efficiently on high grade ore, were established in the coastal, faster developing parts of the country. Inevitably the quality of China’s own ore reserves started to decline just as demand for high grade steel production increased. Since 2000 the imports of 62 per cent fe content ore have soared
while much of the domestic ore has fallen in quality down to as low as 20 per cent fe. This low grade ore needs expensive refining to increase the fe content.
Extended trade pathsThe traditional pattern of iron ore trade had followed the shortest sea routes - Australia and India sold to the Far East, including China, while Brazil sold to Europe. The rapid pace of China’s steel growth meant that by 2006 much of the ore output from India and Australia was sold out. China was then forced to import even more ore from Brazil. The extra sea miles involved, with many vessels ballasting back to Brazil from China, led to a shortfall in cargo throughput to the mills and an even larger requirement for importing from overseas. On the back of that, charter rates for vessels in these trades, for large 174,000 dwt bulk carriers hit $180-200,000 per day - all time highs - immediately before the financial crash of 2008/9.
Yuan for coal In a similar fashion, until recently China was self sufficient in coal, but by 2009 there were logistical problems. Much of the coal was produced in small capacity mines with very poor safety records. The railway infrastructure became clogged, so moving large quantities cross country became difficult, and good quality coal became harder to source. Much of the electricity in China is provided by power stations using steam (thermal) coal. Two extreme winters in 2009 and 2010, and increasing demand for electricity as the economy expands, caused power cuts and a scramble to import yet more. To a lesser extent more high quality coking coal has been imported for the modern steel mills. As China could not buy any more Australian or Indonesian coal - with port congestion limiting supply or simply being sold out - Chinese buyers have been forced to move further afield buying steam coal from Atlantic coast Colombia and coking coal from Baltimore. This long sea mile factor has helped keep dry cargo rates relatively firm this year.
Industrialisation of the coastal zone has had many other effects on the Chinese economy. Population drift from the country to the cities is leaving less young farmers to produce the massive quantity of foodstuffs that the 1.35bn population consumes, and industrialisation is leading to a reduction in available agricultural land. In the north, semi-desert conditions and water shortages are limiting food production, just as the improving disposal income of a rising middle class is improving its diet; demand for feed grain for poultry and pigs or soya beans for cooking oil/human consumption cannot be met by domestic production. China was self sufficient in soya beans until 2000. In crop year 2009/10 she imported 50m tons of soya beans and is expected to import nearer to 60m in 2010/11. This year will be the first year of corn imports since the 1980s and by 2015 the import figure should reach 15m tons.
At the end of last year the freight market was at a crossroads. China now imports 60 per cent of the world’s seaborne iron ore trade, and produces 48 per cent of the world’s crude steel production. Shipowners, TR
ADEW
INDS
/BLO
OMBE
RG
8
Milliontons Chinese steel production since 1999
9
700
600
500
400
300
200
100
0
124 127151
182222
283
353
419
489 500
568620
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
700
600
500
400
300
200
100
0
Milliontons China - yearly iron ore imports since 1995
?610
628
444
380
325
275
202148
11595705853584642
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
180
160
140
120
100
80
60
40
20
0
Milliontons China - yearly coal imports since 2002
2002 2003 2004 2005 2006 2007 2008 2009 2010
Anthracite
Coking
Steam
having experienced the Chinese miracle for many years, have invested in the largest newbuilding programme since the 1970s. This threat of too much shipping capacity hangs like a cloud over the freight market, and will prove a problem if there is a delayed world recovery and/or China’s economy stalls for any reason.
New build bonanzaIn 1985 China started building ships for export and has now become the biggest shipbuilder in the world today. As a result of the global financial crisis and the continuing constriction on ship finance, some yards ran into financial difficulties and some ship orders were cancelled. Nevertheless the Chinese authorities supported many yards and found domestic buyers for cancelled ship orders. This is quite possibly a policy change to build up the Chinese merchant marine to keep control of the cost of their raw material imports in order to continue to export their finished goods competitively, and to avoid another freight rate spike like in 2008.
In the shorter term the economy is proving difficult to read. The government wants to develop the middle zone of the country to stop the drift to the coast. This will involve continued industrial growth for some years to come. At the same time inflation is a problem while the government is trying to keep prices stable. Yet any raising of interest rates to cool the economy and reduce inflation poses risks to that economic growth, and could lead to unemployment in the world’s largest labour market. Furthermore China is trying to cut back on pollution by closing small inefficient coal mines and steel mills, to be replaced by larger, less polluting, more efficient plant. Currently the government is rationing electricity in order to cut back on emissions just as the cold winter approaches. Reading the Chinese tea leaves has become a full time job for shipping analysts.
In such a command economy as China’s, changes in policy are immediate, and of crucial importance to the dry cargo freight market. While there are still plenty of dry cargo owners based in Europe, cargo control, economic growth, and trades are drifting inexorably to the Far East.
Gibson has not been slow to realise the increasing value in the Chinese expansion and the valuable role it can play. Few shipbrokers have the depth of experience and breadth of sector coverage which Gibson offers and this is increasingly fostering its expansion. Gibson opened an office in Hong Kong in 2002, which has focused on the larger dry bulk liftings, while Singapore, which was opened in 2008, has expanded into gas, specialised and dry bulk activities. A new mainland China office is planned for the second half of 2011.
As the pulse of the shipping market moves eastwards so the company’s presence has increased and continues to do so in order to service clients in the usual way. That said, it is worth noting that during the last five years in the tanker trade a number of Chinese companies such as Unipec (Sinopec) and Glasford (PetroChina) have established London offices in order to gain a better grip on this dynamic global shipping market.
9
Iraqi intervention
Hunting Welltonic has been helping with a well intervention operation in the Kurdistani desert
Snubbing rig up A snubbing rig up is a tall, complex structure; the one used in this project measured 102ft from the ground to basket hand rail. A hydraulically powered snubbing unit provides the force on a pipe, above a string of multi-layered pressure control components in the work-over operation.
At the top of the snubbing unit is the basket, which serves as the control post. Below the basket are the hydraulic jacks, which power the pipe into and out of the hole. It consists of three mechanisms for applying force to the pipe in either direction. Each mechanism consists of travelling and stationary slips. The travelling slips are used to move the pipe, while the stationary slips are used to hold the pipe while the travelling ones are repositioned between strokes.
Primary pressure control during snubbing operations is provided by an assembly of stripping rams. These consist of three sets of rams, one on top of the other, that are opened one at a time to allow the collar of the connections between joints of pipe to pass through them. Below the stripping rams are the safety rams, and below them, a shear or blind blowout preventer and an annular BOP. The tertiary barrier, a shear/seal BOP, sits below this directly above the Christmas Tree.
10
Hunting Welltonic was mobilised to a well operated by Western Zargos in Kurdistan during June 2010 to supply
milling and cutting equipment to clean out and cut drill pipe that had become lodged during the course of a maintenance operation in the bore of a producing well. The rig is situated approximately 30 miles south of Sulaymaniyah, 60 miles south east of Kirkuk and 26 miles west of the Iranian border. It’s a pretty extreme environment in all senses of the word. The temperature in the desert during the day hits 145oF (62oC) - not an easy working environment for either the oil workers or the equipment they deploy.
Downhole meltdownWhen the Hunting team first arrived onsite the recorded well head pressure was 5,000psi and gas readings showed 35 per cent hydrogen sulphide gas present. This represents an extremely dangerous environment in which to carry out any recovery mission. The first priority of the lead contractor was to ‘kill’ the well, equalising and managing the pressure by pumping in quantities of heavy mud and cement. This was initially achieved through the snubbing or work-over unit, which had been erected as part of the high pressure operation that had gone wrong. During this phase of the recovery operation the drill string itself became plugged and a Hunting Welltonic milling assembly was run on coiled tubing, to mill out the mud and cement. Unusually this was rigged above the snubbing unit to a total height of 137ft to save time and expense; however this created further complications.
The operation afforded the opportunity to use Hunting Welltonic’s latest XTR 2-1/8 ‘extreme motor’; the team completed the milling operation to a depth of 2,500m (8,200ft). The new mud motors performed outstandingly well as the 19.7lb/gal mud had a solid content of 44 per cent. Most mud motors are only recommended to be used where the maximum solid content percentage is up to 5 per cent. The
motor was tested after it had completed this section of the operation and was found to still be working well within its parameters.
Recovery potentialAfter the coiled tubing operation cleaned out the bore to a depth of 2,500m (8,200ft), an electrically operated ‘e-line’ accoustic probe was used to check and log the health of the well. As a result of this investigation it was discovered that there was an underground blow-out taking place, with severe cross-flow occurring between zones meaning the uncontrolled flow of hydrocarbons in the production. To make matters worse, in these extreme conditions, the e-line perforating tool that had been run down the bore welded itself to the tubing wall. The tools had to be left in the hole at 2,500m depth and the decision taken not to fish them out at this time but instead to send down a tubing cutter via the e-line. Unfortunately these tools also became stuck and had to be left in the hole at a depth of 1,225m (4,000ft).
At this point the decision was made to release the snubbing unit, or work-over rig, because of its high costs and to continue the recovery operation using the regular rig. Hunting Welltonic’s Field Supervisor Graeme Mortimer was able to enjoy a short break as rigging down the snubbing unit, with its multiple jointed pipe assembly and then getting the rig back up, took approximately two weeks.
Gone fishingOnce that phase was accomplished, an external pipe cutter was run on a drill string which performed a cut below the depth of the uppermost lodged e-line tool, now prosaically referred to as a fish. The e-line fish was then recovered as a complete section within the cut drill pipe. Hunting returned to the site to carry out further fishing operations by coiled tubing run through the rig to recover the e-line Bottom Hole Assembly and to perform additional further milling and cleaning by mud motor to an even greater depth.
About the region Kurdistan is an autonomous region located in northern Iraq. It borders Iran to the east, Turkey to the north, Syria to the west and the rest of Iraq to the south. The majority of the region is inhabited by the Kurds, who are a people of Indo-European origin and make up an estimated population of 25 to 30 million. The capital is the city of Arbil and the region is officially governed by the Kurdistan Regional Government (KRG).
The establishment of Kurdistan dates back to March 1970 when an agreement for autonomy was established between the Kurdish opposition and the Iraqi government after years of heavy fighting. At the end of the First Gulf War in 1992, amid the withdrawal of Iraqi forces from three northern provinces, Iraqi Kurdistan emerged as an autonomous entity inside Iraq with its own local government and parliament.
Iraqi Kurdistan is now a parliamentary democracy with a national assembly. Duhok, Erbil and As Sulaymaniyah are the three mountainous governorates covering a territory of around 40,000sq km and a population of about 4 million.
It is estimated that KRG-controlled parts of Iraqi Kurdistan contain around 45bn barrels of oil, making it the sixth largest reserve in the world. Extraction of these reserves began in 2007 when the Kurdish government solicited foreign companies to invest in 40 new oil sites, with the hope of increasing regional oil production over the following five years to an enormous 1m barrels per day.
Coiled tubingCoiled tubing is a continuously milled, flexible steel pipe that is spooled onto a take up reel, that is usually truck mounted for land based wells. As it is unrolled it is lifted by crane to the top of the rig, turned through an easily recognised ‘gooseneck’ to prevent collapse and then run down through the pressure control assembly - in this case a snubbing unit.
A thru-tubing operation is one which is performed inside the production tubing of an existing wellbore. The original idea had been developed as Project Pluto for fuel supply to support the D-Day landings during the Second World War. The fluid handling capabilities were subsequently used during the 1960s to provide the means to wash out sand bridges in oil swells and from there the modern coiled tubing industry has developed.
IraqMediterranean
Sea
CyprusSyria
JordanIsrael
Lebanon
SaudiArabia The
Gulf
Iran
Turkey
CaspianSea
TurkmenistanAzerbaijanArmenia
Kuwait
Black Sea
Kirkuk
Kurdistan
Arbil
11
They say the journey of a thousand miles begins with just a single step - and the principles behind introducing lean
manufacturing in the business are really very similar. Starting with the basics, which can be readily adopted, the approach begins with 5 Ss - sort, straighten, shine, standardise and sustain. Lean came into parlance in the 1990s and Japanese car manufacturer Toyota is often seen as one of its leading proponents.
Ken Oberholz, Hunting’s lean manufacturing Six Sigma Champion, is tasked with looking across the Hunting Energy portfolio to identify and help to implement lean opportunities. Developing on practices embedded at the National Coupling Company prior to its acquisition by Hunting, Ken has since been focusing on what lean manufacturing techniques can be enhanced throughout Hunting’s entire manufacturing businesses.
Better for business, better for staffA typical example of the programme being applied in practice, is provided by the Pressure Control Equipment (PCE) team at the Rankin Road facility. A photographic record of this was assembled and is partially displayed here. The ubiquitous white
Travelling lean
Becoming more efficient is an easily coined corporate mnemonic but implementation is a more difficult task. Hunting has embedded a company-
wide lean manufacturing strategy whose purpose is all embracing
Ken Oberholz (left) and team leader John Fox
After
at that picture conservatively this equates to a week’s worth of production per machine per year. Not bad work for a straightforward and easy to implement lean idea.
The key theory behind lean manufacturing is that it is a never ending process - one in which it is continually possible to refine and enhance
Before
board, central to training, acts as a focus for discussion and a medium for sharing ideas before putting them into practice and is pictured here with Ken and team leader John Fox.
The most immediate change has probably been in shop floor organisation. Eliminating clutter, establishing ‘a place for everything and everything in its place’ not only helps staff but also makes a dramatic difference in the appearance of a facility, as evidenced in the before and after pictures seen here.
Lean also has an important health and safety side to it. One of the areas that has already seen improvement is that the movement of parts has now been raised off the floor using sectional conveyors. The centre conveyor allows a machinist to rotate the parts to the machine - but from a height that is much more comfortable. Repetitive back strain injuries from continued bending down to pick up materials are a common workplace complaint for employees in the manufacturing sector. Using the conveyors also means the process has now eliminated 6ft of material handling per part, or two minutes process time up and down. Over the course of a year this could equal several thousand machine minutes - even looking
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A case in point A customer order for a batch of dolly wheel assemblies provided the ideal chance to try out the 5 Ss, and look at waste identification and implementation of flow. The challenge was to see if an eight hour cycle time for each wheel on the turning centres could be improved upon. A team of three - Mill Operator Hoang Vo, Lathe Operator Simon Tran, and PCE Shop Supervisor Vinh Le - broke down the manufacturing process to identify areas for optimising the work flow. After consideration the team decided to use a mill, instead of the turning centre, to carry out the initial rough cutting process where a significant amount of metal has to be removed before the finished product can be turned. Thus an operation that normally takes two hours on a turning centre was completed in 30 minutes on the mill. The net gain was 1.5 machining hours for each wheel with a total saving of 18 machining hours for the entire job. For Hunting the benefit is clear: on-time delivery performance was increased and cost savings could be measured and collected. It also meant less machine wear on the turning centre while also freeing up the CNC lathe for alternative work.
AfterBefore
the drive towards saving time, improving process and minimising waste. Ken’s mantra is ‘Opportunity surrounds us, we just have to be willing not to accept what we do today as the way we will do it tomorrow.’ Hunting personnel who have already seen what lean can do are in wholehearted agreement.
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Walking in a winter wonderland
The history of London’s Royal Parks provides a fascinating backdrop to some of the city’s famous landmarks - and even during the winter months there is plenty going on to keep visitors coming back
Ask a tourist what springs to mind when they think of London and historic buildings such as St Paul’s Cathedral,
the Houses of Parliament and the world’s most famous waxworks museum would probably be top of the list. We rarely think about London’s green spaces and yet its Royal Parks sprawl across 5,000 acres of the capital - making up some of the city’s defining and most attractive features. Providing unparalleled opportunities for relaxation, entertainment and exercise, the park’s excellent horticulture and thriving wildlife, as well as access to some of the country’s most eminent buildings, statues and memorials attract 37 million visitors each year.
The Royal Parks have also had their role to play in entertaining people through the darkest, wettest and coldest months of the year - a tradition that has continued to this day.
Seasonal events include regular guided walks which examine the evolution of ‘Christmas Through the Ages’ as well as Hyde Park’s stunning Winter Wonderland extravaganza.
A breath of fresh airOwned by the Monarch in the right of the Crown, London’s parks were originally designed for royal hunting chases and most remained enclosed until the 1660s, when monarchs began to transform the deer parks into formal gardens. However, it wasn’t until 1845 that these areas began to open up to the public and evolved into the popular places we know today. This intricate historical tapestry, interwoven with dramatic tales of celebration, mourning, love and rebellion, gives each of the eight Royal Parks a striking and unexpected individuality.
St James’s Park © Giles Barnard
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Walking in a winter wonderland
The park of pleasureCreated primarily to satisfy a royal passion for hunting, the land that became Hyde Park was seized by King Henry VIII from the monks of Westminster Abbey in 1536. Erecting a fence and damming the stream to make drinking ponds for the roaming deer, Henry organised regular hunting chases to entertain visiting ambassadors and foreign dignitaries.
During the years of civil war (1642-51) parliamentary troops built forts in the park to help defend the city from Royalist attacks and remnants of these defensive earthworks are still evident today. The park was also used as a camping ground by many terrified city-dwellers fleeing the Great Plague as it swept through London in 1665.
Following the restoration of the monarchy, Hyde Park regained its royal title and over the subsequent decades acquired a large lake called The Serpentine - the first man made lake in England purposely designed to look natural. Towards the 19th century, Hyde Park also became a venue for national celebrations. To mark the end of the Napoleonic Wars in 1814 for example, the Prince Regent organised a spectacular fireworks display, while 1851 saw the first Great Exhibition of culture and industry take place within these legendary grounds. Although now free of roaming deer, Hyde Park remains to this day largely as it was in the reign of King George IV, who created a monumental entrance at Hyde Park Corner comprising the Triumphal Screen as well as the Wellington Arch.
Hyde Park’s Winter Wonderland is an annual highlight which sees the park transformed into a magical twinkling Christmas world, entertaining visitors of all ages. Aside from featuring London’s largest ice rink, this unique winter festival also includes a traditional German market, selling arts and crafts as well as authentic food and drink - from bratwurst to warming feuerzungebowle. A gentle ride in the heated pods of the illuminated observation wheel provides spectacular views across the city, while fairground attractions, a Winter Circus and a trip to Santa’s Grotto are hugely popular with the younger generations. Those wishing to really embrace the seasonal atmosphere can join in as the band strikes up to perform favourite carols from around the world.
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furthest. Although now surrounded by bustling human habitation, the park’s remarkably unchanged landscape, with its ancient trees, rolling hills and deep woodlands, has accordingly been designated a Site of Special Scientific Interest and a National Nature Reserve.
The abundance of freely roaming deer, for which it is still most famous, was first introduced by King Charles I in 1625. Large, established trees were originally pollarded to encourage the growth of tall branches, suitable for timber while protecting them from grazing deer. A glance at the trees today will confirm this technique, as even the lowest branches are roughly the same height from the ground.
Royal gatewaySituated on the only hill overlooking the Thames, Greenwich Park has always been a strategically important location. With its leafy grassland enclosures and impressive views across the City of London, the park also provides the setting for a number of historic buildings, such as the Royal Naval College, the National Maritime Museum and the Old Royal Observatory. Given in the 17th century by King James I to his wife Anne - legend has it as an apology for swearing at her when she accidentally shot one of his dogs - the park is also the birthplace of many past royals, including Henry VIII and daughters Mary I and Elizabeth I.
Hunting ground The oldest of the Royal Parks, St James’s is bordered by three palaces: the most ancient of these is Westminster, now more commonly known as the Houses of Parliament; Buckingham Palace, arguably the most famous, and St James’s Palace itself.
Evolving from a marshy watermeadow into a leper hospital in the 13th century, the park was acquired to indulge Henry VIII’s passion for deer hunting and, later, Elizabeth I’s penchant for pageantry and pomp. It was the ‘Merrie Monarch’ Charles II however, who redesigned the area, laying lawns and planting avenues of trees.
Gem of tranquillityJust across the road from St James’s Park, The Green Park has an altogether different character. The tranquil space, which stretches 40 acres between Constitution Hill and Piccadilly, was ironically first recorded as the site of a rebellion against the marriage of Mary I and Philip II of Spain and was later a famous spot for duelling. A peaceful retreat for people working, visiting or living in central London, it plays an important link in this chain of open spaces. Although now devoid of buildings and with virtually no artefacts, The Green Park was once a fashionable venue boasting: an ice house, designed to refresh visitors with cold drinks in the summer; a series of lodges; two magnificent temples, both of which exploded during firework displays, and even a library.
Originally known as Upper St James’s, The Green Park was officially renamed in 1746. The reason for this is still unknown. If popular tale is to be believed, the name change may date back to the reign of King Charles II whose wife, on hearing that the King had picked flowers in the park for another woman, ordered the removal of every single flower. True or not, to this very day, there have been no formal flowerbeds planted in The Green Park.
Deer parkSpanning an enormous 2,500 acres, Richmond Park is the largest of London’s parks and its connection to royalty probably goes back the
Today Greenwich is a World Heritage Site, famous for Greenwich Mean Time.
Last year the park hosted a 5km charity Santa run with runners getting into the festive spirit by wearing everything from Santa hats to full-blown Santa costumes.
Jewel in the crownProviding the largest expanse of grass for sports within Central London, The Regent’s Park offers its visitors a wide variety of activities, the most popular of these are the Open Air Theatre and London Zoo. Heralded a masterpiece of landscape design, The Regent’s Park and accompanying Primrose Hill, were primarily a project of the Prince Regent, later King George IV, in the 19th century. Determined to make his mark, the area was designed as a vast circle comprising a lake, canal and new royal residence. Although the plans were never fully implemented, little has changed since local societies rented the spaces left by uncompleted villas.
Queen’s gardenThree royal women with a passion for the outdoors crafted the elegant landscape of Kensington Gardens. Following Queen Mary’s lead, her sister Queen Anne created an English-style garden with an accompanying Orangery. Queen Caroline made the most significant
changes including taking 300 acres from Hyde Park and making landscape history by separating the two with a ditch, known as a ‘ha ha’ - a design innovation which soon was copied all over the country. A haven for wildlife, one of Kensington Gardens best loved and most charming features is the bronze statue of Peter Pan which stands immortalised among other notable figures such as Edward Jenner, who developed a vaccine for smallpox. Unarguably the most spectacular monument is the Albert Memorial, dedicated by Queen Victoria following the death of the husband she loved so dearly, aptly located opposite the Royal Albert concert hall. Most recently, the gardens were chosen as a fitting location for a children’s playground dedicated to the memory of Diana, Princess of Wales, which opened in 2000.
Bushy headquartersA complex patchwork of English history, Bushy Park has the remains of medieval farmland, Tudor deer park, 17th century water gardens and wartime camps. Given to King Henry VIII in conjunction with Hampton Court, it wasn’t until the Second World War that the park really came into its own - providing an ideal location for the production of food. From 1942, Bushy Park became the site of a large US military base, Camp Griffiss, which served as headquarters to a number of the Allied departments. Indeed General Dwight Eisenhower was so averse to working in the centre of town that he designated the park the Supreme Headquarters Allied Expeditionary Force centre for planning the 1944 D-Day, Operation Overlord.
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Innova Electronics was established in 1989, coincidentally the same year as Hunting PLC was formed as a holding company. Its aim
was to supply high voltage power supplies for nuclear detectors used in the oil and gas exploration industry. This choice of power product was made because the existing offerings were among the most unreliable in this part of the upstream business. After an extensive search for a company capable of producing this type of product - in a very small package, able to operate at 200oC - the inescapable conclusion was drawn that none existed and there were no viable alternatives. Innova had found its reason to be, the company was soon formed and a start made into the market for geophysical measurement-while-drilling and logging-while-drilling (MWD/LWD) devices for open or cased hole wells. This was an activity, along with the manufacturing of the products that had been undertaken by the major oil service companies, in their various iterations, during the previous fifty years.
Introducing
Innova
Innova’s core business is the manufacture of printed circuit boards for downhole logging tools used in
the wellbore. Founder and President Trey Cook sets out the background and direction of the company
following its acquisition by Hunting in summer 2010
Powering upThe research and development phase of designing the power supply took Innova two years since the opportunity envisioned was a particularly difficult one to address. This was hardly surprising with a downhole working environment subject to extreme temperatures, corrosive chemical attack and severely constricted packaging parameters. However, after two gruelling years the company started receiving orders and producing power supplies. Continued attention to detail and market needs meant that by the turn of the millennium Innova had become the main outside supplier of this type of product in the oil and gas industry.
Contract killersWhile it was in the company’s business plan to develop and market power supplies to this particular sector, another business opportunity arose. By the mid 1990s, the term ‘outsourcing’ was first heard. The large oil service companies
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quickly saw the light, defining themselves as service providers and looking to improve their focus on their core competences. The flip side was that manufacturing of both mechanical and electrical components were determined to be more efficiently produced by third parties. There were a number of reasons for this. (See text box far right)
Way aheadSo it was that in 1994 Innova started a contract manufacturing division. While most companies in this situation initially planned to mimic their customer’s organisation, Innova set out on a different path. Knowing what the customers had done in the past was fine but the big question was ‘what will they need to be doing in five years time?’ The oilfield mindset at the time was still stuck in the 70s and early 80s, even while elsewhere the computer age was ramping up and the technologies employed were rapidly changing. Understanding where the industry had come from, Innova set out to define the future of the Electronic Manufacturing Services (EMS) oilfield/high reliability market. It was the first contract manufacturing company in its sector to utilise surface mounted equipment specifically for high temperature applications. It also put into practice quality assurance equipment, which had typically been only used by large EMS companies such as flying probe testing, automated optical inspection and AXI (automated x-ray inspection).
To further the technical approach, much effort was put into process and soldering technologies. Innova patented the unique use of a solder alloy which has been used by many down hole companies. Since the industry has
many potential applications the company did not stop at this one solution. For the different markets of high temperature, high shock and vibration, the company developed processes for each individual segment and quickly gained the reputation as the leaders for producing highly reliable products. By the early 2000s, most of the customer community had closed their internal electronic operations and Innova had become the largest strategic electrical contract manufacturer to the entire industry.
Side stepInnova was sold by the original owners in March of 2006 but, with Trey Cook still in the driving seat, the company continued to further its aims and made the first move into mechanical contract work with the establishment of Extel Precision Machining. The purpose was to expand the capability for the business partner relationships by providing one stop shopping for both electrical and mechanical contract work. In this way a major step had been taken towards the supply of the whole tool through the provision of housing and casing. After building a state of the art 88,000sq ft facility, Extel opened for business in mid 2007. The timing was a little awkward with the industry taking a cyclical dip, but the rationale and fundamentals for the two businesses proved solid. The next milestone in the plan lay just ahead.
Hunting ambition Fast forward to 2010, and how Jim Johnson, Director of Hunting Energy, recognised the opportunity presented by Innova. The prevailing state of the industry and international markets demand that corporations operate increasingly
in a global environment. Where the oil service industry once was serviced out of Houston, Texas, the future will address each region of the world as its own unique opportunity. The prospect of combining operations with the Well Construction division of Hunting should help clarify and hone the ambitions of the enlarged group. Coming from a background primarily as a mechanical supplier and manufacturer with global operations, Hunting now has the scope to access even greater opportunities. With the acquisition of Innova Electronics, Hunting stands to be a key contract supplier of mechanical, electrical and integrated products on a global basis furthering its plans in the upstream international oil and gas market.
Trey Cook
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The need to outsource1. By moving products outside to be manufactured, the companies could better focus on what made them different to their customers.2. Cost controls were easier. It was simpler to figure out what a purchase order was raised for and calculate a cost comparison than to do the work internally.3. Contracted companies were typically more proficient at the type of work targeted since it was their bread and butter, while effective supply chain management ensured the market’s competitiveness.4. The investment needed to keep up with changing technologies. By going to outside manufacturers the oil and gas industry, which was typically lagging behind other sectors, could get exposure to other market influences not otherwise likely to be accessed. 5. Effective employee management. The oil and gas industry was very volatile in the 1980s and 1990s and layoffs were followed by rapid upticks in the business cycle only to be followed by another set of layoffs. This made it difficult to keep a consistent, trained and motivated workforce. By using contract manufacturers, the idea was that outside companies would be better placed to manage the cycle through a broader spread of clients and workflow.
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DecathlonStaff from Hunting’s Scottish facilities decided to compete in the 2010 Aberdeen Corporate Decathlon. Here’s what happened…
The Aberdeen Corporate Decathlon is a year-long, multi activity competition and fundraiser covering ten sports and social
events; it kicks off in February with one event taking place each month until October when it culminates with a glittering Sports Ball in aid of children’s charity Cash for Kids. Team Hunting drew on the talents and resources of staff from all the different divisions in Aberdeen - a great way to encourage team work, team building and having fun. Hunting’s Decathlon captain Ingrid McNiven organised and cajoled the disparate
members into their various teams and ensured everyone was kitted out to represent the company in the smartest possible strip.
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Extracts from the Captain’s log ….
Hitting the bullseyeDarts came first. Stepping up to the oche at the Douglas Hotel, one of the team - Deborah Cumming - dazzled with her outfit as much as her darts’ skills. Dressed to impress in a big afro wig, with a Hunting hat pinned onto the top, gold hoop earrings, false eyelashes and blue sparkly eye shadow, she looked every part the 70s Diva and the other teams loved it. Adding to the fun atmosphere, the afro wig meant that no-one could see the dart board when Deborah was playing and her darts kept sticking to the wig when she pulled her arm back - much to the audience’s amusement. The team made it through to the second round but were unlucky to lose out to Maersk in the knock out phase. In spite of no victory prize, it was felt that the team could have taken gold for attitude and sportsmanship alone.
Rallying around The varied ages and ability of the Hunting Badminton players meant the team was placed into the ominously named ‘Group of Death’. A good few wins were notched up early on taking the team into a plate play-off which it narrowly lost to Expro, the overall winners being Clariant. The team spirit and effort expended by both players and supporters at Aberdeen’s Sport Village was tremendous and many have continued to meet weekly in preparation for the 2011 Decathlon.
Strictly HuntingFor the first time ever, Hunting deployed a team of ten brave souls to show off their ballroom dancing skills. Seen as the highlight of the ActivityMix stage of the decathlon, this was no soft option. After an enormous amount of training, and even a couple of broken ribs, Hunting’s dancers squared up to the challenge on the big night. With a packed venue completely sold out, each couple performed their routine twice. In spite of only one month of training, Ingrid McNiven and Jamie Clarke Rumba’d their way into the semi-finals while Louise and Bill McKay made it to third place dancing the Waltz. Linda and Niall also demonstrated their Quickstep skills while Bridget and Joe Upton sashayed through the Cha Cha Cha, and Agata Goworek and Kenny Jamieson attacked the Tango Serida with gusto. It was a night to remember for both the dancers and the supporters cheering them on. If there had been a prize for the loudest supporters, Team Hunting would have been sure to have won.
Tour d’Aberdeen Hunting’s intrepid mountain bikers had to race to pre-set locations, navigating with maps, then on arrival they had to punch a score card with a unique code to prove they had been there. The further away the location, the more points on offer. The team split into two groups: the first group targeted the lower scoring destinations, while the second targeted the higher scoring distant ones with higher points. The challenge had to be completed in just two hours and the whole team had to communicate with each other regularly to give updates. Lady luck was not shining on this occasion and disaster struck with an injury that so hobbled progress that by the time the two groups crossed the finish line, they were 25 minutes over their alotted span which cost them dear in points. In spite of this set back, everyone really enjoyed the challenge and were glad to have taken part - the warm and sunny day certainly helped and the ice creams were of some solace.
Tartan forceTeam Hunting fielded a 16-strong squad for the much anticipated Shell Highland Games’ section of the decathlon. The day kicked off with everyone attempting the Highland fling, dressed in ‘See-you Jimmy wigs’ and a splash o’ tartan. It was an eye popping sight to see 16 adults trying to copy three very talented young Highland dancers. As the day progressed the team clocked up some very fine results. Making it through to the finals were Jamie Clark (shot put and long jump), Bridget Upton (long jump and 100m sprint) and Miroslav Richter (100m sprint). Finally Neil Cumming looked very much the professional getting two perfect 12’s in the caber tossing contest.
The tug of war was the toughest physical challenge of the day; it took sheer strength and immense willpower to win and the team fought like Celtic warriors through four gruelling rounds before the contest was finally over. A very sociable day was topped off when Team Hunting was handed the trophy for a magnificent third place during the awards ceremony - to a suitably frenzied reception from supporters and team alike.
Paddling upstreamThe canoeists started out with a lucky break in the weather - it stopped raining as they set out on Knockburn Loch (near Banchory) to complete their four challenges. The main aim was not to capsize since anyone who did was automatically disqualified and lost all their points. The challenges were a water polo match, two time trials - the first for tethered canoe and then for a figure of eight race around two buoys - and finally a surpisingly tough orienteering test. The first two challenges went without a hitch but unfortunately, during the tricky disembarking stage of the orienteering challenge, two (nameless) members of the team managed to capsize. Even so the teams managed a creditable score and finished the day if not dry, then certainly on a high.
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VolleyballSeven worried volleyball players arrived at the sports hall to compete in the last of the 2010 Decathlon events. Expectations were low. The idea was to have a bit of fun and to represent the company in style. The first game against Subsea 7 ended, to the team’s amazement, in a convincing win. Putting this down to luck, the volleyballers then narrowly beat Logica before the final game in this section against one of Hunting’s major customers Maersk. From initial doubts and nerves the team was starting to sense success, beating Maersk soundly by 36 points to 19, and progressing out of the group in first place.
With adrenaline pumping, the team was beginning to smell victory and dared to wonder if they could actually win the tournament. Next up was Senergy and the game began brilliantly with the team opening up a 17 point lead. Then the heavens opened and victory looked like it might be snatched away with the team struggling to return points. Looking defeat in the face the players resolutely held on to a 48 to 45 points win. Gone were the early feelings of only having a bit of fun, the team now had its sights firmly set on the final. Sadly what followed dashed those dreams with a hard fought but two point defeat by PricewaterhouseCoopers. With spirits flagging the team then lost to Halliburton ending up fourth over all in the event - however, considering their initial ambitions for the day this was a huge achievement. Alas from such an inauspicious beginning and subsequent hint of promise, there will be no happy prospect for next year since volleyball has been removed from the 2011 competition.
Personal health challengeIn this event teams of six are assessed with different measurements taken at the beginning of the challenge and again after eight weeks. The cumulative score of the top four in each team goes towards an average, which determines a team’s overall Decathlon position. The top two from Team Hunting were: Larry Gill and Deborah Cumming with a highly impressive improvement percentage of 33.9 and 26 respectively.
Scrum downThe touch rugby event was always destined to be one of the toughest especially since many of the team had never even picked up the oval ball. A serious training regime ensued on every Thursday evening ten weeks before the tournament at Duthie Park. Requiring different instincts to traditional rugby, the team practised attacking and defending drills in preparation for the pre-tournament ‘friendlies’ with other Decathlon challenge teams and the help of the Scottish Touch Association. Key to success in this game is speed in attack, quick re-organisation and retreat in defence. There’s no doubt it was a steep learning curve in the early days but the team made pleasing progress in such a short space of time. Morale received an extra boost two days before the event when it was discovered that the defending champions had pulled out. The game was on and first up was Senergy.
A nervous first half saw the team concede four points, however in the second they defended well, conceding only a single point and managing to score themselves to keep the final result down to 1-5. In the last pool against Subsea 7, a much fancied young and quick team appeared to be heading for the top of the pool table. However, Team Hunting players were not prepared to roll over that easily and this ended up being a cracker of a game with some heroic defending and the scoring of two tries to draw level at 2-2 before losing two late points in the fading moments to end up at 2-4 down.
Qualifying for the plate competition saw the team paired against Bibby Offshore. By this time tiring legs on a warm sunny afternoon and speedy opposition wingers got the better of the players who made their exit and repaired for a refreshing drink at the bar to discuss next year’s competition and team tactics.
Bowled overTensions were running high as competitors arrived for lawn bowls - the eighth event in the decathlon schedule - particularly because the rain showed no sign of letting up and continued to pour down even when the first games kicked off.
Steady hands got off to a good start with a win against Hess while the next game saw the team coming back from being three shots down. Colin Dornan saved the day, ending on a draw, with a perfect bowl that blocked the three scoring bowls that had looked set to win Subocean the game. The final game got off to a good start but eventually Baker Hughes proved too strong and came out group winners with a score of 6-2.
The first opponents in the plate competition were Clariant; after numerous ‘distance measuring’ calls from the umpire, Team Hunting came out on top. The team was not so lucky with its next challengers, Bibby Offshore, which left it in the play offs for the final game of the day. Morale and honour were finally restored against TAQA in a tough but thoroughly enjoyable round which saw Hunting at last triumph with third place silverware.
The Aberdeen Sports BallBearing in mind that 30 corporate teams took part in this year’s challenge, with up to 100 participants apiece, the pool of talent is enormous. In order to register in this highly competitive environment each company must ask of its members to dig deeply into their personal reserves of ambition, sportsmanship and teamwork. The captains have a particular responsibility to bring their teams to the fore, promoting and ensuring full participation. It is therefore all to the credit of individuals in Team Hunting and Ingrid McNiven that she was shortlisted as a finalist for Captain of the Year and the team firmly established in the peon of participating companies. Team Hunting’s nominated player of the year was Jenny Clyne.
After the awards it was clearly time for everyone to let their hair down, celebrate and party as the Ceilidh and disco played on late into the night.
Roll on 2011!
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Building on the success of its US mud motor business, and with a growing focus on the upstream sector, Hunting
has recently established a new drilling tools company, Hunting Equipment Management Services (HEMS) in Altens, Aberdeen. This new venture has been created to satisfy demand in the drilling tool rental market for both the North Sea and other energy markets in the eastern hemisphere.
The products in question are used within the construction phase of a well to assist the drilling process. For example, drill collars are heavy walled sections of pipe - placed behind the drill bit - to add weight and downward force. Hole opener bits are designed specifically for increasing the size of a pre-drilled hole to a larger diameter. Other products include stabilizers; these centre the bottom hole assembly and make the load more uniformly distributed.
Non-magnetic technology As wellbore geology becomes increasingly complex, steerable drill bits are frequently used to thread their way to the payzone. To achieve this, the use of non-magnetic material becomes critical to prevent interference with directional measurement devices. Accordingly, Hunting offers its drilling range in non-magnetic steel as well
Toolsof the trade
as traditional steel composition. In order to fully support this new business
venture, Hunting has secured extensive workshop and office facilities, enabling the company to undertake fabrication, inspection and management of the tools with minimal subcontracting.
Irene Holden, HEMS General Manager, and her dedicated team have over two hundred years’ combined experience in the manufacture and rental of drilling tools. Using their specialist knowledge of the drilling market, Irene’s team has commissioned a large inventory of equipment suitable for 6in to 42in hole sizes. All of the equipment is brand new and manufactured to NS1 spec, the highest industry standard for the manufacture of these down hole tools.
Tracking equipment Efficient control is vital to optimising tool usage between assets, and HEMS will provide an electronic web based management portal specifically designed to enable customers to track tools hired and/or managed by HEMS, including access to associated documentation. Using this system, Hunting can also manage customer equipment, promoting its visibility. It also enables rig co-ordinators to see what is on other platforms, allowing inter-rig transfers
where possible, thus reducing costs from the supply chain and ultimately reducing the cost of drilling.
Extending tool life Rotational wear is an inherent problem that affects the life of all down hole tools. To counteract this, Hunting’s in-house Technical Manager Doug Stuart has designed a wear band application welding procedure for Hunting’s flexi drill collars, this application and procedure is now certified by Fearnley Procter to conform to NS1/NS2 industry specs. Unlike the hard banding that is currently used in the market, this proprietary application is suitable for non-magnetic drill collars as it does not affect the integrity of the non-magnetic properties of the equipment. The wear bands will restrict excessive wear to the flexi tool joints, enabling cost effective provision of the flexi collars while saving the customer excessive wear charges.
Future prospects HEMS is a welcome addition to the Hunting drilling tools portfolio. With a firm focus on supplying drilling operations HEMS provides a solid platform for future development of other complementary group interests and new designs in the construction phase of the wellbore.
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AberdeenHunting Bridge of Don
Hunting Altens
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Hunting Fordoun
Hunting Montrose
Plans are afoot to integrate Hunting’s multiple locations around Aberdeen into two of the existing sites - with the
expectation of further expansion at each. The idea is to create a regional hub in support of the North Sea and Europe, through the establishment of two distinct centres of excellence. The first, at Badentoy, will specialise in the design, manufacture and administration of all Hunting products and the other, based at Fordoun, will concentrate on OCTG as this facility is better suited for large pipe logistics.
Known internally as Project Harper, the move is also expected to encourage synergies within both Hunting Energy Services (UK) and Hunting Energy Services (Well Intervention’s) existing operations. It will create sufficient capacity for general expansion and also incorporates production of other Hunting global product lines.
Clustered at Badentoy Hunting Energy Services (Well Intervention) will move from its split premises at the Bridge of Don into part of the proposed extended office facility and specialised workshop on the Badentoy Industrial Estate, where Hunting Energy Services (UK) is currently located. There they will be joined by coiled tubing specialists Hunting Welltonic. This site near Portlethen, just south of the main Aberdeen conurbation has been growing steadily since the facility opened there in 1993 and has effectively become the corporate and administrative focus for all Hunting’s Scottish interests. An extended workshop and office accommodation - taking up 1259sq m and 2835sq m respectively - are being built to ensure there is enough existing space and also room for future growth.
Going large at FordounMeanwhile the company’s existing oilfield casing and tubing inspection and threading lines from Badentoy and leased sites at Montrose and Edzell will now be co-located with a brand new manufacturing facility at Fordoun. This site has
already undergone a significant redevelopment over the last couple of years to create a world class pipe management facility. Extending this capability, with a new large pipe machine shop and associated facilities, will allow Hunting to provide further options for global OCTG clients. High specification casing and tubing with premium connections, speciality threading, OEM and accessory manufacturing to support OCTG products will all now be consolidated on one site.
Project Harper is now well under way. Building work commenced in September last year and will continue through, in all weathers, until the planned completion in late summer of this year.
Benefits all round
The expertise available for sharing across the divisions and legacy companies should simplify the management structure and create new opportunities for existing and an increased number of staff.
Significantly reduced traffic in terms of truck movements between the facilities is envisaged, as is improved commuting times between the sites for staff with considerable savings as a result. Introducing some of the latest technological advancement in terms of materials handling systems will, in turn, reduce manual handling and raise safety standards accordingly.
Relocationrelocationrelocation
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ADIPEC 2010Last November Hunting Energy Services showcased its comprehensive range of thru-tubing tools and equipment at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2010. Held at The Abu Dhabi National Exhibition Centre, which covers an enormous 31,000sq m, the event was considered by all to be an overwhelming success; more than 45,000 visitors from around the world attended.
Our HuntingCommunity
One company one website
Hunting’s corporate website has been unified for the first time to encompass the whole of the Hunting PLC business portfolio. With a new sophisticated and contemporary design, each of the company’s main areas of focus - Well Construction, Well Completion and Well Intervention - have been highlighted in easy-to-navigate sections, with an introduction and description of the products used in each division. Visitors to the website are also able to browse a selection of animated videos, which not only help with staff training but also provide a visual explanation of the major Hunting products that are employed in and about the wellbore.
JP Morgan Chase ChallengeBrave volunteers from Hunting’s London office were among 13,363 other racers, joggers and walkers taking part in last summer’s JP Morgan Chase Challenge, which was staged on July 6 2010 in the capital’s Battersea Park. On the day, Team Hunting was led valiantly around the 5.6km course by Chris Berris, who completed the circuit in an impressive 28 minutes, followed by Beverley Barker, Zoe Kubiak, Kershnee Naicker, Daisy Thomas, Claire Slatter and Michael Lucy together with a noisy Hunting supporters’ club. Company Captain Ben Willey was responsible for coordinating the eight group members, as well as organising especially themed T-shirts for the run. All proceeds raised from the event went towards the Help a London Child appeal, a charity which was founded in 1975 by Lord Attenborough CBE, to assist and give opportunities to thousands of London’s children and young people experiencing abuse, homelessness, disability, poverty and illness.
Oilfield Helping HandsHunting PLC’s nominated corporate charity for 2010, Oilfield Helping Hands (OHH), which assists those in the energy industry who find themselves in crisis through no fault of their own, has won an award for the Best Outreach Programme at the 2010 World Oil Awards. The ceremony, a black-tie gala dinner which took place in Houston, was hosted by World Oil magazine and attended by 300 leading industry figures. OHH was started in 2003 by a group of oilfield friends who held a sporting clay tournament to help support the family of a former colleague, who had fallen victim to a terminal illness. A huge success, the event gradually gained momentum as word spread of the organisation. Most recently, OHH staged a clay shooting tournament to benefit the families of those who died on the Deepwater Horizon drilling rig in April last year. As well as honouring the memory of those who died and showing support for those devastated by the loss, the OHH proceeds are also attributed to the survivors whose lives have been changed forever. The Deepwater clay shoot raised $150,000 and OHH was able to announce recently that is has reached the outstanding $1million mark in terms of distributed funds.
AnnouncementDavid Barr has been appointed a non-executive Director of Hunting PLC. A US citizen, he is a former executive of Baker Hughes Inc., where most recently he held the position of Group President of Completion and Production. Prior to this he was Group President of Drilling and Evaluation and also a Division President of Baker Atlas. David is currently non-executive Chairman of Logan International, a Canadian-listed oil services group, a non-executive Director of ION Geophysical Corporation and a Director of Probe Technologies.
David will join the Audit, Remuneration and Nomination committees.
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Our HuntingCommunity
Appointments, Promotions and Retirements
Hunting PLC London
Jeremy Simpson has been appointed to the position of Director of Finance and will be based at Cockspur Street. Joining the Company from Avery Dennison, where he was a divisional Vice President, Finance, Jeremy has previously held senior roles with Smiths Group Plc and KPMG Corporate Finance. He will be responsible for the day to day financial management of Hunting Group, including financial reporting, tax, treasury and IT.
Hunting Manufacturing USA
Paul Matzke has been promoted to the post of USM Technical Coordinator and will provide technical manufacturing support to all Hunting facilities. The role also assists with all commercial efforts regarding special projects, design, tooling and equipment. Based at the Woodlawn Ranch Road facility, Paul’s long history with Hunting started in 1999 when the company purchased Al’s Machine.
Tubular Protection USA
Stephen Joyce has been promoted to General Manager of Hunting’s Tubular Protector business. Starting with Hunting in 2001, Stephen worked first in inside sales for the premium connection division before being promoted to outside sales and now General Manager. Stephen will be based at the Highway 90 facility.
Hunting Trenchless USA
Klane Kirby has been promoted to General Manager of Hunting’s Trenchless Division, bringing more than 22 years of underground construction business experience in senior management positions. Klane’s tenure with industry leaders will help enhance the depth and breadth of the Hunting Trenchless offering to the industry.
Long service
Celebrating 21 years work at Hunting, Bernard Clayton and Mark Flockhart have been with Hunting Energy Services UK since 1989. Ron Martin retired last year after spending a magnificent 30 years with the company. We all wish him every happiness in the future.
And at Hunting HQ in Cockspur Street Dean Mitchell is also celebrating going into his 22nd year with the company.
Hunting Energy Services UK
Bruce Ferguson has been promoted to Managing Director of Hunting Energy Services in Aberdeen. Bruce joined Hunting in 1994 as a trainee accountant, qualifying in 1997. He was appointed Group Controller in 2001 looking after the international operations until becoming HES UK Finance Director in 2008. Bruce will be responsible for the European and Middle East regions.
Hunting Energy Services UK
Tom Jackson has become Chief Operating Officer of Hunting Energy Services in Aberdeen. Tom entered the oil industry in 1978 where he held various roles with Shell, Halliburton and Baker Oil Tools. Moving to the UK from America with Baker in 1990, Tom first became acquainted with Hunting. In 1997 he accepted the position of General Manager of Sales and Engineering with Hunting and was granted UK citizenship in 2005. His current role means he will be accountable for all operating activities for Hunting Energy Services in the UK, Europe and the Middle East.
Hunting Energy Services: Retirement
Following more than 30 years with HES, the irrepressible Sam McClements retired from the company at the end of last year. His passion and admirable work ethic will remain as his legacy. However Sam is staying with the company as a Senior Advisor and Board member throughout 2011. Starting in 1980 as Manufacturing Manager, he was appointed head of sales in 1990, Director of OCTG in 1991 and the following year International Director. In this capacity he was stationed in Singapore for six years until 2000, having gained his MSC in a company sponsored Corporate Leadership programme, before being appointed Executive Director.
A hard act to follow, in his stead Bruce Ferguson has been appointed. Bruce moves from HES UK Finance to Managing Director while Tom Jackson has been promoted to Chief Operating Officer.
Gibson’s achievers
Russell Taylor, Tim Clark, Will Proudfoot and Bello Tukur from Gibson Shipbrokers have passed their Institute of Chartered Shipbrokers (ICS) exams. Bello has now completed the entire ICS course and is able to apply for membership to the ICS, the only internationally recognised professional body in the maritime arena which represents shipbrokers, ship managers and marine agents around the world.
Dean Mitchell
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New jurors announcedThree respected members of America’s national arts community will serve as jurors for the 2011 Hunting Art Prize. Rachael Blackburn Cozad, Director at the Kemper Museum of Contemporary Art in Kansas City, Missouri; Carol Damian, Director at the Patricia and Phillip Frost Art Museum, Florida International University, Miami; and Julien Robson, Curator of Contemporary Art at the Pennsylvania Academy of Fine Arts in Philadelphia, will be entrusted to select both the finalists and the winner of the prize in the two-tiered judging process, which begins early this year.
The recipient of the $50,000 award will be announced at the 2011 Hunting Art Prize gala on April 30 in Houston. The Hunting Art Prize is open to any Texas-based artist who is 18 years or older. More information on the competition can be found at www.huntingartprize.com.
Hunting ‘On The Way’There was an air of anticipation one sunny Saturday afternoon last summer as the Hunting On The Way team set off from Milngavie along the famous West Highland Way, to stroll through the scenic Scottish countryside. The team decided to take part in this event to raise funds for Cancer Research UK and the Children’s Hospice Association Scotland. Although prepared for some breathtaking scenery, the team was blissfully unaware of the adventures that awaited them.
Fooled by the relatively easy first leg of the journey, the team was soon dismayed on waking up to rain, only to be followed by the challenging climb up the unforgiving Conic Hill - without even the distraction of the alleged glorious sights, hidden by relentless drizzle and mist. However, their ordeal was not yet over as, heading north after Loch Lomond, the team unwittingly entered the realm of the infamous Scottish midge. Descending in their thousands and undeterred by industrial strength repellent, the tiny flying creatures were soon feasting on all areas of exposed skin, leaving the team feeling sore, swollen and thoroughly miserable. Thankfully both the weather and team spirits soon picked up and much camaraderie was shared over the rest of the whopping 98 mile hike. And, as the Fort William finishing line grew steadily closer, all walkers On The Way were filled with a final sense of achievement, raising over £6,000 for the two charities.
Pictured: Stan and Doreen Work, Diane and Michelle Grubb, Sam and Margaret McClements, Bruce Ferguson, Graham Vickers, Alun Roberts and Ron Martin
Conroe open for businessThe all new Hunting Drilling Tools facility at Conroe, Texas has been commissioned and is now open for business following the official opening held in November. A full range of rental products will be serviced from this facility suited to the local geology and customer requirements.
A new digital welding machine and hard banding process has been installed for Hunting Drilling Tools at the Nisku facility in Edmonton, Canada to enhance the non-magnetic drill collar and associated product lines
Andrew Long‘Self Portrait for Change’
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Hunting PLC3 Cockspur Street, London SW1Y 5BQ, UKTel +44 (0) 20 7321 0123Fax +44 (0) 20 7839 2072www.huntingplc.com
Hunting PLC (USA)24 Waterway, Suite 700, The Woodlands, Houston, Texas 77380, USATel +1 713 595 2950Fax +1 281 907 5075
Hunting Energy (North America)2 Northpoint Drive, Suite 400, Houston Texas 77060, USATel +1 281 442 7382Fax +1 281 442 5771
Hunting Energy (Europe)Badentoy Avenue, Badentoy Park, Porthlethen Aberdeen AB12 4Y, UKTel +44 (0) 1224 787000 Fax +44 (0) 1224 787100
Hunting Energy (Middle East)1505, LOB 19 Jebel Ali Free ZonePO Box 261929 Dubai, UAETel +971 4 8865 799Fax +971 4 8865 784
Hunting Energy (Asia)34 Benoi Road, Singapore 629901, SingaporeTel +65 (0) 686 16176 Fax +65 (0) 686 15010
Gibson Shipbrokers16 Ely Place, London EC1P 1HP, UKTel +44 (0) 20 7667 1000Fax +44 (0) 20 7430 0571
