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by ArabianBusiness.com staff writer on Friday, 21 March 2008
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David Barr, group president for Baker Hughes Eastern Hemisphere operations speaks exclusively to Oil & Gas Middle East.
Last month Baker Hughes, the world's third-largest oilfield services company, announced the official opening of its major new facility in Dubai. The 25-acre site in Techno Park, Jebel Ali houses the headquarters for the entire Middle East and Asia Pacific region, as well a vast Eastern hemisphere education centre.
The site represents a US$80 million commitment, and houses an extensive screen manufacturing plant, which is scheduled to begin operations in a few months time.
From this facility the company will produce the well screens and production management systems for sand control and optimised recovery from long horizontal wells, which are widely applied in the Middle East.
David Barr, group president, MEAP, spoke exclusively to Oil & Gas Middle East about what the company's vision for 2008 and beyond. "All of out division are growing nicely and its been an explosive world in the last few years," says Barr.
"Things really changed in 2001, there was a noticeable sea change in our business. We saw a noticeable blip, and then since 2002 it's been pretty consistent and ongoing. That's quite remarkable for this sector. I've been in the industry for 35 years and this is the first time I've seen the growth be so consistent.
The company remains bullish about what the next few years has in store, and decided the business unit and education sector at Techno Park was a necessary investment to adequately prepare the Eastern Hemisphere business for more busy years ahead.
"Our firm belief is that this will continue for many years to come, and we need to equip our staff for the challenges of working in a rapidly expanding market.
The company's North America division has witnessed sustained growth for eight years, says Barr, but that growth has been largely sustained by natural gas, whereas the rest of the world, similar growth has been primarily fuelled by oil activities.
"We still expect the non-North America sector to grow in a very healthy fashion for the next four to five years at least, because there is still industry expansion and investment pouring in, but we're seeing the growth decelerate to a degree. The market will certainly grow there over the coming years, but there is greater potential for that to flatten somewhat too.
With development and investment at unprecedented levels, Barr is certain that business expansion can be sustained even if the oil price drops off.
"Most projections of the oil price, in terms of developing current and upcoming projects is significantly below the market price we have at the moment. So there can even be a pretty steep drop in the market price that would still support very nice growth for the oil industry.
Location: Onshore Oman
Division: Hughes Christensen
Objective: Drill hard abrasive sandstone interbedded with soft shale at a high rate of penetration
Solution: HedgeHog diamond impregnated bit
Results: In Oman, HedgeHog set a new 8-3/8 inch world cumulative footage record. The bit accumulated a total of 3706 ft in 308 hours for Petroleum Development Oman. The bit also set PDO regional records for longest 8-3/8 inch impregnated bit run and doubled the rate of penetration in the Mabrouk formation.
Based on dull grading, Hughes Christensen engineers concluded the bit was in excellent condition and could have continued drilling.
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