Profile: National Oilwell Varco Inc (NOV.N)
29 May 2015
National Oilwell Varco, Inc. (NOV), incorporated on July 14, 1995, is a worldwide provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The Company conducts operations in over 900 locations across six continents. The Company operates through three segments: Rig Technology, Petroleum Services & Supplies, and Distribution & Transmission. Its Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion, and servicing of oil and gas wells. Its Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells and service drill pipe, tubing, casing, flowlines and other oilfield tubular goods. Its Distribution & Transmission segment provides maintenance, repair and operating supplies (MRO) and spare parts to drill site and production locations worldwide. In May 2012, the Company acquired Wilson distribution business segment from Schlumberger Limited. In July 2012, NOV Distribution Services ULC (NDS), a wholly owned subsidiary of the Company, acquired CE Franklin Ltd. In February 2013, the Company acquired Robbins & Myers Inc. In May 2014, National Oilwell Varco Inc completed the spinoff to its stockholders of its distribution business as an independent public company, NOW Inc.
In January 2011, the Company acquired Christensen Roder Productos E Servicos De Petroleo LTDA. In February 2011, the Company acquired Capital Valves Limited. In April 2011, the Company acquired Merpro Group Limited. In May 2011, it acquired Barracuda Ventures Pte Ltd. In July 2011, the Company acquired Barracuda Ventures Pte Ltd. and Khalil Al Sayegh General Maintenance Company. In October 2011, the Company acquired Ameron International Corporation. In November 2011, the Company acquired Scomi Oiltools, Inc., Scomi Oiltools De Mexico S. De R.L. De C.V. and XL Hardbanding & Fabrication, Inc.
The Rig Technology segment offers a range of equipment that automates well construction and management operations, such as offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating and assembly systems; rig instrumentation systems; coiled tubing equipment and pressure pumping units; well workover rigs; wireline winches; wireline trucks; cranes, and turret mooring systems and other products for floating production, storage and offloading vessels (FPSOs) and other offshore vessels and terminals. The Rig Technology segment sells directly to drilling contractors, shipyards and other rig fabricators, well servicing companies, national oil companies, independent oil and gas companies, supply stores, and pipe-running service providers. Rig Technology rents and sells drilling rig instrumentation packages and control systems, which monitor various processes throughout the drilling operation, under the name MD/Totco (Instrumentation).
The Company designs, manufactures, assembles, upgrades, and supplies equipment sets to a variety of land drilling rigs, including those designed to operate in harsh environments, such as the Arctic Circle and the desert. Its land rig product names include the Drake Rig, Ideal Rig and Rapid Rig. The Top Drive Drilling System (TDS) rotates the drill stem from its top. Components of the TDS also are used to connect additional joints of drill pipe to the drill stem during drilling operations, enabling drilling with three joints of drill pipe. The Company buys motors from third parties and builds them in its own facilities. Rig Technology produces rotary tables, as well as kelly bushings and master bushings for most sizes of kellys and makes of rotary tables. Pipe racking systems are used to handle drill pipe, casing and tubing on a drilling rig. Vertical pipe racking systems move drill pipe and casing between the well and a storage (racking) area on the rig floor. Horizontal racking systems are used to handle tubular, while stored horizontally and transport tubulars up to the rig floor and into a vertical position for use in the drilling process.
The Rig Technology segment manufactures various tools used to grip, hold, raise, and lower pipe, and in the making up and breaking out of drill pipe, workstrings, casing and production tubular, including spinning wrenches, manual tongs, torque wrenches and kelly spinners. Mud pumps are high pressure pumps located on the rig that force drilling mud down the drill pipe, through the drill bit, and up the space between the drill pipe and the drilled formation (the annulus) back to the surface. Hoisting systems are used to raise or lower the drill stem, while drilling or tripping, and to lower casing into the wellbore. The Company provides a range of crane solutions, with products for all segments of the oil and gas industry, as well as many other markets.
The Company’s tensioning systems provide continuous axial tension to the marine riser pipe (larger diameter pipe which connects floating drilling rigs to the well on the ocean floor) and guide lines on floating drilling rigs, tension leg platforms and jack-up drilling rigs. Blowout Preventers (BOPs) are devices used to seal the space between the drill pipe and the borehole to prevent blowouts (uncontrolled flows of formation fluids and gases to the surface). The Rig Technology segment manufactures an array of BOPs used in various situations. Drilling activities are carried out from a drilling rig. A drilling rig consists of one or two derricks; the substructure that supports the derrick(s), and the rig package. Rig Technology designs, fabricates and services derricks used in both onshore and offshore applications, and substructures used in onshore applications. The Rig Technology segment also works with shipyards in the fabrication of substructures for offshore drilling rigs.
The Company’s Instrumentation business provides drilling rig operators real time measurement and monitoring of critical parameters. Coiled tubing consists of flexible steel tubing manufactured in a continuous string and spooled on a reel. The Rig Technology segment manufactures and sells both coiled tubing units and the ancillary pressure control equipment used in these operations. The Company’s wireline products include wireline drum units, which consist of a spool or drum of wireline cable, mounted in a mobile vehicle or skid, which works in conjunction with a source of power (an engine mounted in the vehicle or within a separate power pack skid). Advanced Production and Loading PLC (APL) designs and manufactures turret mooring systems and other products for floating production, storage and offloading vessels (FPSOs) and other offshore vessels and terminals.
The Company’s Rig Technology segment conducts manufacturing operations at facilities in Houston, Galena Park, Sugar Land, Conroe, Cedar Park, Anderson, Fort Worth and Pampa, Texas; Duncan, Oklahoma; Orange, California; Edmonton, Canada; Aberdeen, Scotland; Kristiansand, Stavanger and Arendal, Norway; Etten-Leur and Groot-Ammers, the Netherlands; Carquefou, France; Singapore; Lanzhou and Shanghai, China; Dubai, the United Arab Emirates, and Ulsan, South Korea. Rig Technology sells directly to drilling contractors, other rig fabricators, well servicing companies, pressure pumping companies, national oil companies, independent oil and gas companies, supply stores, and pipe-running service providers.
The Company competes with Access Oil Tools, Aker Solutions AS, American Block, Bomco, Nabors Industries, Cavins Oil Tools, Cameron, DenCon Oil Tools, Forum Oilfield Technologies, General Electric, Hitec Drilling Products, Hong Hua, Huisman, Global Energy Services, M&I Electric, Tesco Corporation, Stewart & Stevenson, Inc., Huntings, Ltd., Vanoil, Parveen Industries, Soilmec, TTS Sense, Omron, Bentec, Blohm, Voss, Liebher, Seatrax, McGregor, Rolls Royce and Weatherford International, Inc.
Petroleum Services & Supplies
The Petroleum Services & Supplies segment manufactures, rents and sells a variety of products and equipment used to perform drilling operations, including drill pipe, wired drill pipe, transfer pumps, solids control systems, drilling motors, drilling fluids, drill bits, reamers and other downhole tools, and mud pump consumables. Oilfield tubular services include the provision of inspection and internal coating services and equipment for drill pipe, line pipe, tubing, casing and pipelines; and the design, manufacture and sale of coiled tubing pipe and fiberglass composite pipe for application in corrosive environments. The segment sells its tubular goods and services to oil and gas companies; drilling contractors; pipe distributors, processors and manufacturers; and pipeline operators.
The Company provides a range of support equipment, spare parts, consumables and services through the Petroleum Services & Supplies segment. The Petroleum Services & Supplies segment also provides products and services that are used in the course of drilling oil and gas wells. The Wellsite Services business provides products and services, such as drilling fluids, solids control equipment, waste handling and treatment, completion fluids, power generation equipment, and other ancillary well site equipment and services. Wellsite Services is also engaged in barium sulfate (barite) mining operations in the State of Nevada. The Pumps & Expendables business provides centrifugal, reciprocating, and progressing cavity pumps and pump expendables (Pumps & Expendables) into the worldwide oil and gas and industrial markets.
The Company is engaged in the provision of equipment, products and services, which separate and manage drill cuttings produced by the drilling process (Solids Control). Drilling fluids are used to maintain well bore stability, while drilling, control downhole pressure, drill bit lubrication, and as a drill cuttings displacement medium. Completion fluids are used to clean the well bore and stimulate production. The Portable Power division provides rental equipment for use in the upstream oil and gas industry, refinery and petrochemical, construction, events, disaster relief and other industries. The Company develops, manufactures and applies its tubular coatings, known as Tube-Kote coatings, to new and used tubulars. In addition to the Company’s TK coatings, it also has corrosion control products and services, including TK Liners, TuboWrap, and KC-IPC Connections. TK Liners are fiberglass-reinforced tubes, which are inserted into steel line pipe.
The Company manufactures downhole tools. The Company engineers and fabricates inspection equipment for steel mills, which it sells and rents. The Company manufactures and sells a variety of drill stem products used for the drilling of oil and gas wells. The principal products sold by Drill Pipe Products are drill pipe, drill collars and heavyweight drill pipe and drill stem accessories, including tool joints. The Company’s drilling products include its lines of XT and TurboTorque connections and large diameter drill pipe. The Company also provides subs, pup joints (short and odd-sized tubular products) and other drill stem accessories. NOV IntelliServ provides wellbore data transmission services. NOV IntelliServ offers its products and services on a rental basis to oil and gas operators. In addition to producing green tubes, Voest-Alpine Tubulars (VAT) produces seamless tubular products for the oil country tubular goods (OCTG) market and non-OCTG products used in the automotive, petrochemical, construction, mining, tunneling and transportation industries.
The NOV Downhole business unit combines an array of drilling and intervention tool product lines with the drill bit, coring services, borehole enlargement and drilling dynamics/drilling optimization service lines. NOV Downhole manufactures fixed cutter and roller cone drill bits. It provides fixed-cutter bit technology under various brand names, including TReX, Raptor, Helios, SystemMatched and Rotary Steerable. The Company produces roller-cone bits for a variety of oil and gas drilling applications. NOV Downhole designs, manufacturers and services an array of downhole motors used in straight hole, directional, slim hole, and coiled tubing drilling applications. NOV Downhole also manufactures and sells drilling jars and fishing tools. Through its Coring Services business line, NOV Downhole offers coring solutions that enable the extraction of actual rock samples from a drilled well bore and allow geologists to examine the formations at the surface.
NOV Downhole offers drilling optimization services via its Advanced Drilling Solutions (ADS) business line. The Company’s Pumps & Expendables business designs, manufactures, and sells pumps that are used in oil and gas drilling operations, well service operations, production applications, as well as industrial applications. The Company also manufactures a line of commodity and valves, chokes, and flow line equipment used in both production and drilling applications. The Company manufactures its pump products in Houston, Odessa and Marble Falls, Texas; Tulsa and McAlester, Oklahoma; Scott, Louisiana; Newcastle, England, and Buenos Aires, Argentina. The Company’s XL Systems product line offers the customer an integrated package of large-bore tubular products and services for offshore wells.
The Company competes with DO Corporation, ShawCor Ltd., Schlumberger, Ltd., Frank’s International, Inc., Baker Hughes Incorporated, Halliburton Company, Weatherford International Ltd., Patterson Tubular Services, Vallourec & Mannesmann and Tenaris.
Distribution & Transmission
The Distribution & Transmission segment supports offshore operations for oil and gas producing regions worldwide. The segment uses information technology to provide procurement, inventory management and logistics services to its customers worldwide. It is also a producer of water transmission pipe and fabricated steel products, such as wind towers, and specialized materials and products used in infrastructure projects. Distribution Services’ supply chain solutions for customers include outsourcing the functions of procurement, inventory and warehouse management, logistics, business process, and performance metrics reporting. The Transmission business unit supplies products and services used in the construction of water pipelines, lining and wind towers, progressing cavity pumps, grinders, filters, screens, and a variety of artificial lift equipment. This business unit also includes the manufacturing of polyvinyl chloride and polyethylene sheet lining for the protection of concrete pipe and cast-in-place concrete structures from the corrosive effects of sewer gases, acids and industrial chemicals. Additionally, the business unit manufactures large-diameter towers for the United States wind-energy market. Wind towers are sold to wind turbine manufacturers.
The Company competes with Schlumberger, Ltd., CE Franklin, McJunkin Red Man, Edgen Murry II, LP, Wolseley, plc, WESCO International Inc., KS Energy Limited, Apex Distribution, Inc., Northwestern Pipe Company, Vestas, Katana Summit, Trinity, Valmont, Skycast and Stresscrete.
National Oilwell Varco Inc
7909 PARKWOOD CIRCLE DR
HOUSTON TX 77036