Vam Drilling has targeted an increased share in the Middle East drilling products market with the acquisition of UAE based DPAL, a manufacturer of drill pipes.
The firm, which is a wholly owned subsidiary of Vallourec, unveiled the acquisition last month, and has immediately signaled its intent in the region.
“The UAE is a place where our market share was way too low considering our ambition, so we felt the best way to make a significant step to increase our presence was to have a manufacturing base there,” Nicolas de Coignac, deputy managing director of VAM Drilling said.
He added that the acquisition will enable the company to react quickly to customer needs in the region and shorten lead times.
“We are enjoying a dual advantage competitively; being more local, because DPAL has been there for a long time and has gained a reputation, and to expand the products we offer. So we will combine both strengths to hopefully gain a significant market share in the region,” commented de Coignac.
Vam Drilling has grown in recent years through acquisitions, buying companies in 2005, 2006 and now 2009.
De Coignac also revealed that he believes new drilling techniques will drive industry trends in the future. “I think the main trend is the evolution of drilling techniques, for example; deviated drilling, extended reach drilling, more gas drilling and more deep offshore drilling.
“ So when you talk about the risk of depletion of oil and gas, we are far from this point, it only means we will have to go further to seek reservoirs that are in more remote places with access that is more complicated. This for us is an important trend that the industry is calling for more technology and more technological products because this is exactly where we are positioning ourselves,” de Coignac concluded.
The value of the deal was undisclosed.
