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Al Shaheen Well Services was established in June 2008 as a joint venture company between Qatar Petroleum and Weatherford, with the mission to provide a full range of oilwell services and supply of equipment at offshore and onshore locations of QP, its subsidiaries and joint ventures.
The JV has initially focused on directional drilling, tubular running, drilling tools and wireline services, both open and cased-hole, though is constantly rolling out Weatherford’s latest technology solutions.
Mohamed Al-Sayed, chief executive officer of Al Shaheen Well Services spoke to Oil & Gas Middle East from the company’s flagship offices in Doha, and says his primary mission is to deliver world-class technology solutions to local operators.
“Although we are a relatively new entity as a brand, the JV company bought out Weatherford Qatar so the infrastructure, technology portfolio and service contracts were already in place. We have since expanded that offering and will soon include training and a wider array of services than was originally available here in Qatar,” explains Al-Sayed.
The company launched just as the effects of the global economic crisis wrought havoc on energy markets, with oil tumbling and rig counts decimated across the Gulf region.
“Of course, launching at that time impacted our business plans and our projections. Originally we were looking at a market accommodating 32 rigs, and that shrunk very quickly to around 18 rigs.
However, our market share did not shrink. By 2010 and 2011 we anticipate the Qatar domestic market to be back at its original size.”
Al-Sayed says that workover and maintenance related business was hit hardest across the whole national market, but adds each Middle Eastern market has its own dynamics. “The Qatari market has a lot of operators and a lot of wells engaged in some of the most challenging drilling operations anywhere. Qatar remains a very attractive market because it is not all just about oil. The gas market is far more stable largely because the projects and sales contracts are long-term ventures.”
In spite of the downturn in rig utilisation, Al-Sayed says the company managed to grow its operations. “The pedigree that the company has inherited from the Weatherford Qatar operations and the cutting edge technology solutions we can bring to the local market has enhanced our activity in Qatar. We are already one of the major service providers in the domestic market and have managed to grow market share by working with all of the major QP partners, including Maersk Oil Qatar, Total and Oxy.”
The company’s ambition is to capture more of the value-add services for the indigenous Qatari market, and has recently hosted a technology showcase day in Doha, to build awareness of its full portfolio.
“Our technologies can help meet our clients’ objectives at enhancing production and recovery by optimising production in Qatar’s maturing oil fields and exploiting the vast natural gas resources of Qatar’s North Field. This is why it was important to share this technology with our partners through such events,” says al-Sayed.
In addition to building the domestic market capabilities, Al-Sayed says it is important that the company plays a role in technology and knowledge transfer to local employees.
“We are planning to recruit a lot more Qatari’s so we are being very active in working with universities and recruitment events. Ideally we would to see Qatari’s in place as the backbone of the company. This is not an overnight process, but we hope that in the coming years we will attract a lot of local talent to the business.
To augment that process, and encourage a skills and knowledge based generation of well service experts, Al Shaheen Well Services is working on a new training centre, the first of its kind in Qatar, to teach drilling support and well support services. “The centre will be made available to all of the companies in Qatar. It will have a full range of simulators, and will be unique because of its proximity to much of the drilling and workover activity, so it will enable students to go and learn in working environments too,” says Al-Sayed.
With drilling work expected to pick up quickly in 2010, Al-Sayed says the company’s timetable and ambitions are firmly back on track. “Right now we are bidding for some major tenders in Qatar, and we hope that in two to three years time we will have doubled our market share.”
