Profile: RigNet Inc (RNET.OQ)
27.88USD
2 Aug 2013
$-0.05 (-0.18%)
$27.93
$27.62
$28.05
$27.44
4,478
15,349
$29.41
$16.85
RigNet, Inc. (RigNet), incorporated on July 6, 2004, is a network infrastructure provider serving the remote communications needs of the oil and gas industry. Through a controlled and managed Internet Protocol/Multiprotocol Label Switching (IP/MPLS) global network, it delivers voice, data, video and other value-added services. Its customers use its secure communications and private extranet to manage information flows and execute operations in remote areas where conventional telecommunications infrastructure is either unavailable or unreliable. It offers its clients means of communications with their remote operations, including offshore and land-based drilling rigs, offshore production facilities, energy support vessels and support offices. As of December 31, 2010, it was the primary provider of remote communications and value added services to approximately 400 customers in over 900 locations in approximately 30 countries on six continents. During the year ended December 31, 2010, its revenue generated from countries outside of the United States represented over 70% of total revenue. It has an international customer base consisting of drilling contractors, exploration and production companies and oilfield services companies. In July 2012, the Company acquired Nessco Group Holdings Ltd.
The Company’s services include managed services solutions offered at a per rig, per day subscription rate through customer agreements with terms, which range from one month to three years, with some customer agreement terms as long as five years; end-to-end IP/MPLS global network for trouble shooting and service restoration time and quality of service for various forms of data traffic; end-to-end IP/MPLS network allows new components to be plugged into its network and available for use (plug-and-play); a network to accommodate multiple customer groups resident at a site, including rig owners, drillers, operators, service companies and pay-per-use individuals; value-added services, such as wireless fidelity (Wi-Fi) hotspots, Internet kiosks and video conferencing; proactive network monitoring and management through a network operations center, which manages network reliability at all times and serves as an in-bound call center for trouble shooting around the year; engineering and design services to determine the product and service solution for each customer; installation of on-site equipment designed to perform in extreme environments, and maintenance and support through locally-deployed engineering and service support teams and warehoused spare equipment inventories.
Operations
The Company’s business operations are divided into three reportable segments: eastern hemisphere, western hemisphere and U.S. land. The Company’s eastern hemisphere segment services are performed out of its Norway, Qatar, United Kingdom and Singapore based offices for customers and rig sites located on the eastern side of the Atlantic Ocean off the coasts of the United Kingdom, Norway and West Africa, around the Indian Ocean in Qatar, Saudi Arabia and India, around the Pacific Ocean near Australia, and within the South China Sea. As of December 31, 2010, this segment was serving approximately 141 jack up, semi-submersible and drillship rigs. As of December 31, 2010, this segment also was serving approximately 120 other sites, which include production facilities, energy support vessels, land rigs, and related remote support offices and supply bases.
The Company’s western hemisphere segment services are performed out of its United States and Brazil based offices for customers and rig sites located on the western side of the Atlantic Ocean off the coasts of the United States, Mexico and Brazil, and within the Gulf of Mexico, but excluding land rigs and other land-based sites in North America. As of December 31, 2010, this segment was serving approximately 85 jack up, semi-submersible and drillship rigs. As of December 31, 2010, this segment also was serving approximately 155 other sites, which include production facilities, energy support vessels and related remote support offices and supply bases.
The Company’s U.S. land segment provides remote communications services for drilling rigs and production facilities located onshore in North America. Its U.S. land segment services are performed out of its Louisiana based office for customers and rig sites located in the continental United States. As of December 31, 2010, this segment was serving approximately 334 onshore drilling rigs and 86 other remote sites. Its product suite consists of voice, data and Internet access services along with rig location communications, such as wired and wireless intercoms and two-way radios. It provides installation and service support from 11 service centers and equipment depots located in oil and gas producing areas around the continental United States.
Service Offerings
The Company offers a communications package of voice, video, networking and real time data management to offshore and land-based remote locations. It is a single source solutions provider, which links multiple offshore or remote site rigs and production facilities with real-time onshore decision centers and applications. The services it offers are voice-over-Internet-protocol (VoIP), data and Internet access. In addition, it provides other value-added services, such as video conferencing solutions, TurboNet solutions, real-time data management solutions, Wi-Fi hotspots and Internet kiosks, Secure Oil Information Link (SOIL), wireless intercoms and handheld radios.
The Company provides video conferencing solution scalable for a range of uses. Video conferencing service is delivered over its SOIL network and is branded as SOIL Meeting. It offers hand held wireless cameras through its Remote View service, which allows experts in offices to troubleshoot equipment offshore. This service is also delivered over its SOIL network. Working with Riverbed Technology, Inc. (Riverbed), it deploys infrastructure appliances for client-server interactions over wide area networks (WANs), without breaking the semantics of the protocols, file systems or applications.
The Company offers real-time data management solutions in concert with two partners: Petrolink International (Petrolink), and Kongsberg Intellifield AS (Kongsberg). Petrolink is an independent data distribution company, which enables secure transmission and distribution of petrophysical data generated in remote locations and transmits this data to customer offices. It also provides real-time services based on the SiteCom system developed by Kongsberg. SiteCom enables users to gather, distribute and manage rig data from all service providers and global sources in real-time. The system manages drilling instrumentation, mud logging, measurement while drilling (MWD), logging while drilling (LWD), wireline logging, cementing, weather, positioning and many other applications. SiteCom works for both small land rigs with a range of sensors, or large land and offshore operations with sensor readings per second. It is a remote communications partner for Petrolink and Kongsberg, providing access to its network infrastructure at remote sites. It bills the end customer for the real-time service and share the revenue for this service with Kongsberg and Petrolink.
The Company offers Wi-Fi hotspot and Internet kiosk solutions, which facilitate access to the Internet by rig-based personnel. The Wi-Fi hotspot and Internet kiosk solutions provide ready access with a familiar user interface without requiring specialized equipment to connect to the service. In addition to the services, the Company provides to offshore and onshore remote sites, it also operates a network enabling oil companies and their counterparties, such as rig owners, service companies and other suppliers, to connect and collaborate on a secure basis. As of December 31, 2010, SOIL’s value-added services were being provided to more than 180 oil and gas companies and oil and gas industry suppliers throughout the North Sea region.
The Company’s SOIL network is a fully managed members-only communications network hub, which enables collaborative partners, suppliers and customers to transfer and share data. With one link to SOIL, clients are connected to all other members. With a service level uptime commitment of 99.7%, its SOIL network supports a range of bandwidths from 64 kilobits per second to 1 gigabits per second, offering speed and reliability ideal for a range of applications used in the oil and gas industry, as well as value-added services it provides, such as SOIL Meeting (video conferencing), SOIL Hosting (application hosting), and SOIL Drop Zone (large file storage). It charges a monthly fee for access to its SOIL network depending on the access speed. In addition, it charges for installation of the required equipment and value-added services.
The Company competes with Inmarsat plc, Harris Corporation, Schlumberger Ltd, Orange Business Services and AT&T.
Company Address
RigNet Inc
Suite 300, 1880 S. Dairy Ashford
HOUSTON TX 77077
P: +1281.6740100
F: +1281.6740101
Company Web Links
| Name | Compensation |
|---|---|
James Browning |
-- |
Mark Slaughter |
1,382,110 |
Martin Jimmerson |
780,681 |
William Sutton |
734,353 |
James Crenshaw |
-- |

