THE bulk of Electro-Flow’s business comes from the mature drilling rigs market rather than new-builds. But Wheeler and Littlechild say the new-builds side is showing signs of taking off. A good example is the choke control systems contract for the Transocean Clear Leader II. Another is the design and build of BOP control systems for the Q4000 deepwater intervention/drilling semi-submersible built for Helix of Houston. As for retro-fits, while the American drilling companies are hugely important, so too is having Brazilian oil company Petrobras on board as an enthusiastic user/specifier of Electro-Flow systems.
Also, while the US drilling big brands occupy centre stage, and the company is keen to expand its offerings to them, Wheeler and Littlechild are determinedly ensuring that their risk is spread.
With this in mind, they have started to add new clients such as the indigenous Brazilian drilling outfits; also Middle East, Indian, Italian and Romanian. That way, it’s not just repeat business, but new stuff that, over time, may convert to regular. They are especially happy if new relationships involve rigs that are 20-plus years old, bearing in mind that more than 80% of the world mobile offshore drilling unit fleet fits that description.
“That’s where the potential lies,” says Littlechild.
“There’s been under-investment for a very long time and now the rig owners have a lot of money; thanks to healthy day rates, they’re investing in upgrades. I think we’ll always continue to be more effective in the retrofit and upgrade markets, but still taking a bite out of the new-builds market.”