Flotek presence in kingdom growing

October 2014

FORTY per cent of all Saudi Aramco rigs are using Flotek Industries Inc’s Teledrift measurement-while-drilling technology, says Houston (US)-based Flotek, a diversified global supplier of drilling- and production-related products and services to the energy and mining industries.

The Saudi application is the latest instance of growing interest in Teledrift after the technology became a market leader in North America, the company said.

“We continue to be pleased with the progress in Teledrift, especially the traction we have seen in Saudi and Argentina in the past several months,” said John Chisholm, Flotek’s chairman, president and chief executive officer.

Flotek’s Teledrift is a product line incorporating a series of tools that are robust, user-friendly and designed for use directly by rig personnel without a Flotek technician present.

These measurement tools lower cost by significantly reducing non-productive time as near real-time information about drift and azimuth of the wellbore are captured and telemetered uphole for the drilling company to take appropriate corrective action. This eliminates the need for making round trips or running tools on wire line.

These tools now include a satellite-based “Remote Monitoring and Certification” Flotek teledrift service. This further improves cost structures by enabling remote access and visibility to Teledrift MWD information, text and emergency messaging on a 24/7 basis.

Flotek’s presence in the Middle East has also resulted in increased chemistry sales across the region, including into Saudi Arabia. Flotek Gulf, the Company’s Omani joint-venture, continues to progress with Flotek and Gulf Energy completing negotiations with an engineering and construction company for the development of Flotek Gulf’s chemistry manufacturing facility. Completion of the facility is expected in early 2015.

Specifically, the company’s core CnF chemistry continues to grow in the Middle East region along with Flotek’s recently acquired drilling fluids technology, which Chisholm says has garnered the attention of Saudi Aramco.

Earlier this year Flotek Industries entered into an agreement with Anthony Rea, via ARC Fluid Technologies, LLC to acquire certain intellectual property that will expand Flotek’s use of its patented complex nano-fluid technology into drilling fluids systems, providing a superior solution for a myriad of challenges, especially those presented by unconventional drilling programmes.

The CnF chemistry that is doing well in the Middle East was developed and pa tented by Flotek’s CESI. It is a novel new chemistry used in fracturing tight formations which causes reservoir fluids to move more easily from the tight rocks into the production stream. The CnF technology has delivered millions of dollars in value over the life of wells in Green River, DJ Niobrara, Marcellus, Barnett, Eagle Ford, Brakken and other basins and reservoirs.

“While we continue to move deliberately in our Middle East venture, our presence is having a positive impact on our results,” added Chisholm. “Flotek is actively shipping chemistry to multiple nations in the region, and we expect commerce to accelerate in the second-half of the year. Also exciting is the interest in both our new drilling fluids and enhanced oil recovery technologies which are gaining traction in the region.”

Last April, Flotek announced the appointment of Amerr Mahgoub as vice president for Middle East business development. As head of the regional business development and marketing team, Mahgoub will focus on development of new and existing markets for Flotek, including the development of markets served by the Flotek-Gulf Energy joint venture based in Oman and the company’s relationship with Saudi Aramco.

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