Crisscrossing the Globe to Offer Operating Convenience and Expertise to Middle East Countries | ProductsSLB
Case Study
Location
Saudi Arabia, Iraq, Oman, Asia
Details

Challenge:

  • Boosting gas production in Saudi Arabia.
  • Helping Iraq expand output.
  • Strategic development goals in Oman.

Solution:

  • Logistics and service commitment that match need for operating convenience.
  • Creation of a local skilled labor pool.
  • Transfer of industry knowledge.

Result: Cameron continues its commitment to and investment in people and resources to support the oil and gas industry in the Asia Pacific and Middle East region. Our presence close to field operations reduces response times and lowers costs for customers.

Products Used

Crisscrossing the Globe to Offer Operating Convenience and Expertise to Middle East Countries

Needs of international oil companies and national oil companies run parallel when it comes to strategically located support for ongoing oil and gas operations. Quality, reliable equipment is crucial to realization of country energy goals and the local economy. Logistics and service commitment take on greater importance with the need for operating convenience.

Operator challenges

  • Logistics and service commitment that match need for operating convenience
  • Creation of a local skilled labor pool
  • Transfer of industry knowledge
Crisscrossing the globe to offer operating convenience and expertise to Middle East countries

Cameron center supports energy industry in Iraq

Analysts note that Iraq’s ambition to expand output will require progress all along the energy supply chain. The availability of in-country support will play a key role in realizing this ambition. Operators consisting of international energy companies and the national oil company face a host of challenges, including political instability, unclear regulations, a shortage of technically skilled labor, and tribal affiliations. The unemployment rate remains high in Iraq at 11%.

Recognizing the importance of in-country support in the region, Cameron established a location in North Rumaila three years ago with a goal to offer a one-stop shop supporting customer demands for service, installations, and training. The only OEM supplier to serve Iraq, Cameron opened a new facility in 2014. This comprehensive support facility conducts commissioning of new equipment, inspection, and certification of wellhead and Christmas trees, and recertification of BOPs. Cameron’s service technicians provide total aftermarket support in the field or in the shop 24 hours a day, 365 days a year and are available for a variety of special jobs, including decompletions, recompletions, trim changes, and installation of  safety equipment.

To date, Cameron has installed more than 1000 wellheads in country. This fully equipped plant with state-of-the-art components used to maintain a wide range of Cameron’s products holds critical spares in country, with the Middle East distribution center in Jebel Ali UAE maintaining other OEM spares.

Representing seven countries and speaking three languages, personnel in Cameron’s Rumaila facility are addressing needs of operators conducting oil and gas operations. Many operators are now introducing unconventional wellhead systems such as the Standard Snapring Modular Compact (SSMC) and Multibowl (MBS) systems into the region, raising the importance of technically adept technicians and readily available aftermarket services. A strong local team has been assembled and developed to address this need. Intangible benefits of Cameron’s surface and drilling equipment being supplied to the region include confidence, reliability, and full aftermarket support during all stages of operations. Other advantages include spare manufacturing capacity, centralized resources, and technically strong management. Safety is a high priority in this facility; only one recordable incident has been recorded since the start of North Rumaila facility operations.

The number of local staff in Iraq is planned to increase to 65%, 75%, and 85% in 2014, 2015, and 2016, respectively. In addition to a shop apprentice program for local talent development and cross training of local field service technicians to support all divisions represented in the Iraq facility, Cameron offers in-house employee and customer training; 137 customers and contractors have undergone education on our MBS equipment. North Rumaila facility personnel undergo approximately 16 HSE courses.

Originally Cameron entered work in Saudi Arabia in 1972, supplying and servicing drilling systems. In 2000, the JV was formed and a facility was established from 2000 to 2006. Today, Cameron provides drilling equipment, performs surface wellhead installation, and offers flow control and expertise. Growth has been continuous, and now this location is undergoing expansion of the machine shop to increase capacity. Cameron has committed to purchase a separate building to serve as the aftermarket services base.

Crisscrossing the globe to offer operating convenience and expertise to Middle East countries
Crisscrossing the globe to offer operating convenience and expertise to Middle East countries

Partnering for continued growth in Saudi Arabia

Until recently, Saudi Arabia has long held the position as largest producer and exporter of total petroleum liquids in the world (the US has taken over that position). Home of the world’s largest oilfield, Saudi Arabia has set out to massively boost gas production and there exists a strong drive to go into unconventionals. The Cameron Al-Rushaid facility in Al-Khobar is positioned to aid in this effort; Cameron has been tasked with installation of large-bore, 9-in. completions for the Hasbah Gas Development project.

The facility currently supplies and services BOPs and wellheads on 212 rigs in Saudi Arabia. Cameron has supplied an average of 125 BOPs per year through the Cameron Al-Rushaid joint venture (JV). By 2015, there will be 260 rigs in Saudi Arabia.

These achievements go a long way toward meeting customer demands for convenient access to equipment and service. Local content plays a key role in Cameron Al-Rushaid operations. Approximately 58% of employees who take part in the JV are from Saudi Arabia. Capabilities include manufacture of surface wellheads; repair and recertification; spare parts inventory; and indoor and outdoor storage.

In-country manufacturing is handled at this facility, while Cameron’s Singapore plant manufactures HPHT equipment (currently 70% of plant capacity is destined for Saudi Arabia).

The JV has adopted the Cameron safety program, even to the action of requiring personnel to contribute one observation per day, keeping safety a priority from the start of each day. Training initiatives in this facility are comprised of two-day basic wellhead schools that culminate in certification.

Benefits

  • Confidence in equipment availability and reliability
  •  Full aftermarket support during all stages of operation
  • Spare manufacturing capacity
  • Centralized resources
  • Creation of new regional jobs

Helping Oman realize strategic development goals

As the largest oil and gas producer in the Middle East that is not a member of OPEC, Oman remains heavily dependent on oil revenues, which account for nearly 80% of the country’s export earnings and 40% of gross domestic product. The country has made natural gas -- both for export as well as for domestic gas-intensive industries -- the cornerstone of its diversification and economic growth strategy. Continuing a tradition begun in the late 1990s, Cameron is currently assisting Petroleum Development Oman (PDO), the country’s second-largest employer after the Oman government, along with Shell, BP, and Oxy to develop these valuable oil and gas reserves.

Crisscrossing the globe to offer operating convenience and expertise to Middle East countries

Local content for Cameron’s operation in Oman has been at 70% and work is conducted in Arabic and English. Historically, local capabilities have been a key driver for the Muscat base where qualified Omani machinists construct API specification spools and tie-in equipment for wellheads and Christmas trees and combine them with high-tech equipment such as gate valves delivered from Cameron’s Singapore manufacturing plant. The facility also provides storage for customer equipment.

Having recently increased its stake in the joint venture to a majority share, Cameron plans to expand the Oman facility to become the manufacturing hub for the Middle East region. Aftermarket services and inventory management will be emphasized as part of the expansion; the existing Oman facility will become headquarters for aftermarket services where assembly, test, and inspection will continue to take place. Cameron plans to lease a partner facility to serve as the primary manufacturing plant and utilization of local supply chain capabilities will be increased.

Deriving value from local operations

As a market leader in surface wellheads and Christmas trees, Cameron continues its commitment to and investment in people and resources to support the oil and gas industry in the Asia Pacific and Middle East region. Our presence close to field operations reduces response times and lowers costs for customers.

Proximity to markets and customers is critical to ensuring client alignment and fit-for-purpose products. No matter where in the world oil and gas operations are taking place, invaluable industry knowledge is being delivered locally through the availability of highly engineered, well designed, and accurately manufactured equipment along with experience and best practices from around the world. Tangible and intangible value is being derived from Cameron’s continued commitment to provide superior operations support in the Asia Pacific Middle East region and the creation of new jobs and empowerment in line with the countries’ oil and gas sector vision. Cameron’s continued dedication and reputation to provide valuable customer support is the same in any language.

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