Bill Crighton, regional sales manager, MENA for T3 Energy Services says that even when development across the region was suppressed there were important deals to be had.
Where are your customers concentrated in the region?
We have customers in all the GCC countries, and handle sales into Egypt and Iraq, obviously energy is our core business, and the Middle East is a hotbed of activity and potential for us.
What proportion of your revenue is generated here?
With four countries in the top six of the world’s largest estimated oil reserves being in the Middle East, it is easy to understand the logistical importance of having a strong presence within this region. This was of paramount importance when T3 Energy chose to expand and invest here. We are currently, have been working on and have been successful with quite a few notable contracts within Oman, Iraq and Saudi Arabia.
Has the energy market bounced back at all this year?
There was definitely a slow down in demand as most of the major projects were either cancelled or put on hold. There was also a notable reduction in drilling rigs within some regions. More recently the cost of oil has stabilized and oil companies have been able to prepare budgets based on this stability. There has also been substantial interest and growth into Iraq as the country has matured from it’s turbulent past.
How is this region faring in comparison to other markets?
Even during the difficult times, Kuwait actually placed contracts to increase it’s rig count and Oman was virtually unchanged. It is always prudent to control spending during a recession and that was notable on a global scale in all industries. However, you only need to look at how the construction industry was impacted within this region to understand that we may have faired better than other markets. We need to understand that the oil markets have notably fluctuated over the years due to changing oil prices and as such we are possibly now better equipped at managing ourselves. I envisage a steady but progressive growth as budgets and shelved projects are released.
The Middle East is looking to develop increasingly sour oil and gas. What challenges does this pose to valve manufacturers?
Not only high H2S and CO2 contents but also now pressures up to 20 000psi and at temperatures exceeding 350F in some cases. It is usually not just one aspect which can effect valve integrity and operational qualities but a collection of pressure, temperature and hydrocarbon gases. Our valves are a non elastomeric design. Elastomers are known to have been compromised by high temperatures, pressures, explosive decompression and harsh or erosive substances.
Our valves are generally supplied in alloy steel with stainless wetted parts which serve most applications. With higher concentrate H2S/CO2 expected in very severe conditions, our valves can be internally clad with a corrosion resistant alloy or manufactured in full Stainless steel.
What is the most significant change to the valves you sell into the oil and gas business?
Our HPT gate valves and HXE choke valves were exclusively designed for the harsh service conditions expected in our industry whether it be drilling, well servicing, underbalance drilling, production, Sub Sea, flowback or fracturing applications. We designed our products to be resilient and hard wearing, require low maintenance due to an effective sealing mechanism and cost effective with a commonality of spare parts throughout the range. We also manufactured and qualified our valves to the highest industry standards recognised globally, API 6A – PR2, API 6FA, API 16C monogrammed.
