WINTER 2010/11 No179 IN ISSUE 179 WINTER 2010/11

4 Marshalling 8 China 10 Iraqi 12 Travelling Marcellus currents intervention lean Hunting’s latest facility in Latrobe, China’s economic rise over the last Hunting Welltonic’s recent Embedding lean manufacturing Pennsylvania, is situated right decade has changed the course assignment in Kurdistan principles is a journey that at the heart of the strategically of international trade for cargo demonstrates how the company’s provides benefits for both the important Marcellus Shale play such as iron ore and coal. Gibson presence in well intervention is company’s workforce and to the Shipbrokers reports being taken to a global community bottom line

14 Walking in a 17 Introducing 20 Decathlon 23 Tools of winter wonderland Innova dream the trade London’s Royal Parks have a long Hunting’s latest acquisition Lacking energy? Find out how A newly established Hunting history of entertaining everyone is a manufacturer of intricate Hunting staff fared when they Energy Management Services from monarchs to the general mechanical, electrical and took part in the 2010 Aberdeen (HEMS) facility is leading the public - and long nights with cold integrated products for use Corporate Decathalon way in drilling equipment days provide the perfect setting for in the energy sector’s harsh rental festive fun environments

25 News from our community

Hunting Review; the external house magazine of Hunting PLC 3 Cockspur Street, London SW1Y 5BQ, UK Cover 24 Relocation, [email protected] Edited by Victoria Bailey and Georgia St James’s Park relocation, relocation Langdon, Campaign PR. ©Giles Barnard [email protected] The integration of multiple Designed by Anthony B Ainley MCSD sites around Aberdeen into two [email protected] purpose-built facilities will give Produced and printed by Hunting Energy Services room for Duffield Printers Ltd future growth [email protected]

2 Foundations of our future

For 136 years the Hunting name has been synonymous with promoting the principles of trust and quality. Thanks to these shared values and the economic success of the company we can also add longevity to this list.

Last year marked a seminal year along the company’s growth path. We made our largest ever acquisition with the purchase of electronic manufacturing specialist Innova-Extel. This Houston-based company, now known as Hunting Innova, gives us the opportunity to grow our market presence in the upstream international oil and gas industry through the manufacturing of electronic components which complement Hunting’s existing mechanical capability. The Review’s introduction to Innova is accompanied by an operational case study for Hunting Welltonic, celebrating its first year in the fold and flying the Hunting horn - on this occasion to Iraqi Kurdistan.

There is also an opportunity to describe how the company is putting down roots in new locations including Latrobe, PA to address the extraordinary development of the Marcellus natural gas shale basin. The success of these new ventures will be largely dependent on the good name and reputation that has been earned elsewhere. We also look at how the value proposition is constantly reinforced, in this instance through ‘lean’ manufacturing, whose journey will ultimately encompass all company facilities.

Naturally the Hunting brand is not just about equipment supply. Without our loyal and hard-working staff around the world, and the service they provide, our products would mean very little. This issue also includes an expanded section covering what our community has been doing over the last six months. Many staff from Hunting’s Aberdeen facilities joined together to compete in a corporate decathlon while in the USA the achievements of our chosen corporate charity Oilfield Helping Hands have been recognised with a major oil industry award.

At the start of another decade we wish colleagues, customers and friends a happy and prosperous New Year. .

3 Marshalling Marcellus The grand opening of a new regional base for Hunting Drilling Tools in the northeastern USA is further evidence of the market appetite for the Hunting brand and product line

4 he United States has recently started developing the largest prospective Tunconventional gas reserve in the world due to the discovery of the Marcellus Shale play, in the Appalachian Basin, as a producible field. The Basin covers a 700 mile stretch from Tennessee to New York generally bordering the western flank of the Appalachian Mountains. The proximity of Marcellus to the largest US market for power and heat should lead to a ready outlet for the produced gas at a very competitive price - and cost. Already there has been a rapid growth in rig counts from an average of forty in 2009 to more than a hundred predicted by the year end. This foreshadows a potential for growth that is greater than any other US shale play. The The team at Latrobe highest concentrations of wells are in northeast Pennsylvania and the tri-state area of Ohio, West Virginia and Pennsylvania. Most of the rigs are drilling horizontal, rather than directional wells, Hunter A Wood II indicating the Marcellus basin where pricing is at a premium for drilling tools and mud motors. It is expected that the play will be developed in a manner similar to the Barnett Shale in Texas and the Haynesville Shale in Texas and Louisiana. Well depths are typically 6,000 - 8,000ft for horizontal wells and generally shallower for those fewer vertical wells. Positioning & location Following a careful study of the market characteristics, southwest Pennsylvania was selected as the best area in which to locate a new Hunting service facility. This places it at the heart of growth in the Marcellus. Most competitors are far to the south in the older fields of the Appalachian Basin broadly located on the I-79 corridor in northern West Virginia. The specific site selected is in Westmoreland County, in the city of Latrobe. It is located Polishing up for open day approximately forty miles to the east of Pittsburgh under the glide path to the Arnold Palmer regional airport. This facility also serves as a hub for servicing premium connections and well intervention products to a geographic area approximately 8 to 10 times larger than any of the existing service zones. It is also well placed to build a network of local satellite stockists if the market so requires. The quickest route to market for Hunting tools was to work with the existing directional drilling customers. Several of them have been active in the region already and others had plans to enter. With a local presence it is also possible to access a new regionally specific customer base. There is a definite need to be local since timely turnaround is critical. The main service centre at Casper is 48 hrs away and Oklahoma City is still too much of a stretch for a viable business. However the reputation gained out West, carries over to the East and there is considerable familiarity with the Hunting product line within led to the installation of a waste liquids collection configurations include stabilisers of varying the local drilling tool community. system, Watermaze processor and evaporator, so diameters, fixed bent housings with varying that any solid waste products can be disposed of bends, and bearing housing that is either slick Fitting out simply and effectively. or stabilised. The intention is that the new The site selected was a 28,296sq ft former tea centre will also have the ability to service warehouse that includes 3,296sq ft of office space Tooling up Hunting Seal-Lock Wedge and TKC 4040 RTC on a 3.5 acre parcel. The building is expandable Provision is made for seventy drilling motors threading requirements in due course. to 40,000sq ft, while some initial building and spare parts plus twenty vibration A new permanent stock is being purpose improvements and customisation were required. dampeners and twenty-five drill collars. A built for the directional and horizontal These included electrical service upgrade, bridge stock of 6½ in and 8in mud motors has been market, where Hunting’s motor technology is crane service, sumps, driveway modifications, transferred to kick start the new facility with greatly improving. The superior performance locker rooms, air lines and so on. Environmental suitable adaptations to reconfigure these encourages both the operating and directional considerations and good neighbour practices have tools for local purposes. Parts for alternative companies to use these products. However,

5 since that reputation was garnered for vertical straight wells, there is the need to re-craft that track record in the horizontal market. The directional tools have a higher initial cost than straight hole tools because of the adjustable bent housing and the need for harder wearing carbide coated rotors, instead of chrome ones. Air tends to be used as the medium for drilling which is much tougher on the tools but, together with the carbide, is preferred environmentally. It is also less susceptible to chemical attack, so the total life cost is less by eliminating the recoats. Utilisation is higher since the rotor is not out of service for several months getting recoated. A more respectful operating approach to the environment is also evident with the introduction of new fracking techniques to reduce environmental impact and assuage fears of water course contamination. People power There is no historic pool of local gas industry Welcoming visitors to the grand opening expertise to draw from and until recently out- of-state personnel with the experience of other shale plays have been the preferred resource. In the long term this is unsustainable and undesirable. In recognition of the situation local community colleges and universities, amongst them St Vincent’s in Latrobe, are putting in place the appropriate training programmes to satisfy the new industry requirements. This has begun with the view that the natural gas industry is going to be the regional mainstay, replacing the steel industry which has retired three former generations of workers. The same community of course also provides a workforce imbued with a conscientious work ethic, familiar with a rigorous approach to safety and quality. It has also to be recognised that, despite the steel heritage, the culture is of strong rural communities, rather than big city individualism, which means residents are used to making things happen from very little. From the executive suite to rig hand there is a ready, willing and able resource. The impact on the local employment profile is going to be considerable. In 2009 it was estimated that in Pennsylvania alone 48,000 new jobs have been created in the natural gas industry, a figure that is set to rise to 175,000 over the next decade. Similar knock on changes are expected in the local infrastructure, which has barely been touched by developments to date.

Mean, clean, lean machines

6 Local history and culture Hunting’s facility is very near to the Arnold Palmer regional airport, itself just south of the original Philadelphia-Pittsburgh Turnpike that links Latrobe and Ligonier, some 10 miles apart. Well-known for flying, as well as his place in the upper echelons of golf, Arnold Palmer is thought of as one of Latrobe’s most famous sons. The two boroughs were once connected by a railway to transport lumber, stone and coal to fuel the burgeoning local steel industry and the developments spawned as a result of that wealth. The line also took passengers and gave access to the Laurel Highlands, a favourite summer retreat for wealthy city industrialists such as the Heinz family and banking dynasties like the Mellons. Early days The natural history of the shale formation goes back some 400 million years, while the human history of permanent settlement in this beautiful corner of Westmoreland County spans little more than 250 years. The British built a fort to establish and protect their westward march at Ligonier in 1758. Defeating a combined force in the French and Indian war this was to prove to be the key to unlocking the hinterland and the strategic fork in the Ohio River 40 miles to the west which was subsequently named Pittsburgh after the then British Secretary of State, William Pitt. Moving with the times The heavily wooded rolling hills are the most westerly outcrops of the Appalachian mountain range with Chestnut Ridge, rising up behind the Hunting plant, being the last before descending to the great plains that pan out until eventually meeting the Rockies. Ligonier gradually developed, initially as a staging post from the eastern seaboard with a central square that acted as a corral for horses and wagons with local inns and retailers geared to travellers located around it. With the arrival of the railway in 1894 this trade became obsolete and there the story might have ended were it not for the gentrification of the square into the ’Diamond’. With the building of a bandstand, large hotel and up market cluster of shops, the economic pulse of the community was reinvigorated. Various cultural and popular events are staged that continue to attract many visitors today. The story for Latrobe is similar in that it matured into a compact industrial hub on the main Pennsylvania Railroad at the junction with the Ligonier Valley Railroad. The local brewery gave the town international status as the home of Rolling Rock beer. Steel was the principle agent of growth and without the tenacity and ambition of today’s populace a steady drift in the health of the community might have been expected. It is testament to their working spirit that a vibrancy and willingness to embrace new opportunity is so welcomed and measures put in place to attract and sustain a new industrial generation.

7 while much of the domestic ore has fallen in China’s economic fortunes quality down to as low as 20 per cent fe. This low grade ore needs expensive refining to and challenges have had a increase the fe content. significant impact on global Extended trade paths The traditional pattern of iron ore trade had trade, as research from followed the shortest sea routes - Australia and India sold to the Far East, including Gibson Shipbrokers shows China, while Brazil sold to Europe. The rapid pace of China’s steel growth meant that by 2006 much of the ore output from India and Australia was sold out. China was then forced to import even more ore from Brazil. The extra sea miles involved, with many vessels ballasting back to Brazil from China, led to a shortfall in cargo throughput to the mills and an even larger requirement for importing from overseas. On the back of that, charter rates for vessels in these trades, for large 174,000 dwt bulk carriers hit $180-200,000 per day - all time highs - immediately before the China financial crash of 2008/9. Yuan for coal In a similar fashion, until recently China was self sufficient in coal, but by 2009 there were logistical problems. Much of the coal was produced in small capacity mines with very currents poor safety records. The railway infrastructure became clogged, so moving large quantities cross country became difficult, and good quality coal became harder to source. Much he major driving force in international - the demand for steel started to outstrip of the electricity in China is provided by trade over the last ten years has been production capacity of domestic iron ore. power stations using steam (thermal) coal. Tthe rapid industrial growth of China. The first tangible sign for the world market Two extreme winters in 2009 and 2010, This initial phase of development was based was a rapid increase in iron ore imports at the and increasing demand for electricity as the on domestic iron ore and coal, which were turn of the last decade. New blast furnaces, economy expands, caused power cuts and used to make steel and cement to power which worked more efficiently on high grade a scramble to import yet more. To a lesser the building programme of new towns, ore, were established in the coastal, faster extent more high quality coking coal has roads, railways, airports and factories. Low developing parts of the country. Inevitably the been imported for the modern steel mills. As production costs then allowed competitively quality of China’s own ore reserves started China could not buy any more Australian or priced consumer goods to be exported to to decline just as demand for high grade steel Indonesian coal - with port congestion limiting the rest of the world. However, by 2000, the production increased. Since 2000 the imports supply or simply being sold out - Chinese business model was showing some strain of 62 per cent fe content ore have soared buyers have been forced to move further afield buying steam coal from Atlantic coast Colombia and coking coal from Baltimore. This long sea mile factor has helped keep dry cargo rates relatively firm this year. Industrialisation of the coastal zone has had many other effects on the Chinese economy. Population drift from the country to the cities is leaving less young farmers to produce the massive quantity of foodstuffs that the 1.35bn population consumes, and industrialisation is leading to a reduction in available agricultural land. In the north, semi-desert conditions and water shortages are limiting food production, just as the improving disposal income of a rising middle class is improving its diet; demand for feed grain for poultry and pigs or soya beans for cooking oil/human consumption cannot be met by domestic production. China was self sufficient in soya beans until 2000. In crop year 2009/10 she imported 50m tons of soya beans and is expected to import nearer to 60m in 2010/11. This year will be the first year of corn imports since the 1980s and by 2015 the import figure should reach 15m tons. At the end of last year the freight market was at a crossroads. China now imports 60 per cent of the world’s seaborne iron ore trade, and produces 48 per cent of the

TRADEWINDS/BLOOMBERG world’s crude steel production. Shipowners,

8 having experienced the Chinese miracle for Million many years, have invested in the largest tons Chinese steel production since 1999 newbuilding programme since the 1970s. 700 This threat of too much shipping capacity hangs like a cloud over the freight market, and will prove a problem if there is a delayed world 600 recovery and/or China’s economy stalls for any 620 reason. 568 500 New build bonanza 489 500 In 1985 China started building ships for 400 export and has now become the biggest 419 shipbuilder in the world today. As a result of the global financial crisis and the continuing 300 353 constriction on ship finance, some yards ran into financial difficulties and some ship 283 200 orders were cancelled. Nevertheless the 222 Chinese authorities supported many yards 182 and found domestic buyers for cancelled ship 100 151 orders. This is quite possibly a policy change 124 127 to build up the Chinese merchant marine to keep control of the cost of their raw material 0 imports in order to continue to export their 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 finished goods competitively, and to avoid another freight rate spike like in 2008. In the shorter term the economy is proving difficult to read. The government wants to Million develop the middle zone of the country to tons China - yearly coal imports since 2002 stop the drift to the coast. This will involve 180 continued industrial growth for some years to come. At the same time inflation is a problem 160 while the government is trying to keep prices Anthracite stable. Yet any raising of interest rates to cool 140 the economy and reduce inflation poses risks Coking to that economic growth, and could lead to 120 unemployment in the world’s largest labour Steam market. Furthermore China is trying to cut 100 back on pollution by closing small inefficient coal mines and steel mills, to be replaced 80 by larger, less polluting, more efficient plant. Currently the government is rationing 60 electricity in order to cut back on emissions just as the cold winter approaches. Reading 40 the Chinese tea leaves has become a full time job for shipping analysts. 20 In such a command economy as China’s, changes in policy are immediate, and of 0 crucial importance to the dry cargo freight 2002 2003 2004 2005 2006 2007 2008 2009 2010 market. While there are still plenty of dry cargo owners based in Europe, cargo control, economic growth, and trades are drifting inexorably to the Far East. Million Gibson has not been slow to realise the tons China - yearly iron ore imports since 1995 increasing value in the Chinese expansion and 700 the valuable role it can play. Few shipbrokers have the depth of experience and breadth of sector coverage which Gibson offers and this 600 is increasingly fostering its expansion. Gibson ? 628 opened an office in Hong Kong in 2002, which 610 has focused on the larger dry bulk liftings, 500 while Singapore, which was opened in 2008, has expanded into gas, specialised and dry 400 bulk activities. A new mainland China office is planned for the second half of 2011. 444 As the pulse of the shipping market moves 300 380 eastwards so the company’s presence has increased and continues to do so in order 325 to service clients in the usual way. That 200 275 said, it is worth noting that during the last five years in the tanker trade a number of 202 Chinese companies such as Unipec (Sinopec) 100 148 115 and Glasford (PetroChina) have established 70 95 42 46 58 53 58 London offices in order to gain a better grip on 0 this dynamic global shipping market. 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

9 Iraqi intervention Hunting Welltonic has been helping with a well intervention operation in the Kurdistani desert

Snubbing rig up A snubbing rig up is a tall, complex structure; the one used in this project measured 102ft from the ground to basket hand rail. A hydraulically powered snubbing unit provides the force on a pipe, above a string of multi-layered pressure control components in the work-over operation. At the top of the snubbing unit is the basket, which serves as the control post. Below the basket are the hydraulic jacks, which power the pipe into and out of the hole. It consists of three mechanisms for applying force to the pipe in either direction. Each mechanism consists of travelling and stationary slips. The travelling slips are used to move the pipe, while the stationary slips are used to hold the pipe while the travelling ones are repositioned between strokes. Primary pressure control during snubbing operations is provided by an assembly of stripping rams. These consist of three sets of rams, one on top of the other, that are opened one at a time to allow the collar of the connections between joints of pipe to pass through them. Below the stripping rams are the safety rams, and below them, a shear or blind blowout preventer and an annular BOP. The tertiary barrier, a shear/seal BOP, sits below this directly above the Christmas Tree.

10 Black Sea Armenia Azerbaijan Turkmenistan Coiled tubing Turkey Coiled tubing is a continuously milled, Caspian flexible steel pipe that is spooled onto Sea a take up reel, that is usually truck Kurdistan mounted for land based wells. As it is unrolled it is lifted by crane to the top Arbil Cyprus of the rig, turned through an easily Kirkuk recognised ‘gooseneck’ to prevent Syria Iran collapse and then run down through the Lebanon pressure control assembly - in this case a Mediterranean snubbing unit. Sea A thru-tubing operation is one which Israel Iraq Jordan is performed inside the production tubing of an existing wellbore. The original idea had been developed as Project Pluto for fuel supply to support the D-Day landings during the Second World War. The fluid Saudi handling capabilities were subsequently Arabia The Kuwait Gulf used during the 1960s to provide the means to wash out sand bridges in oil swells and from there the modern coiled tubing industry has developed.

unting Welltonic was mobilised to a motor was tested after it had completed this well operated by Western Zargos in section of the operation and was found to still About the region HKurdistan during June 2010 to supply be working well within its parameters. milling and cutting equipment to clean out and Kurdistan is an autonomous region located cut drill pipe that had become lodged during Recovery potential in northern Iraq. It borders Iran to the the course of a maintenance operation in the After the coiled tubing operation cleaned out east, Turkey to the north, Syria to the bore of a producing well. The rig is situated the bore to a depth of 2,500m (8,200ft), an west and the rest of Iraq to the south. approximately 30 miles south of Sulaymaniyah, electrically operated ‘e-line’ accoustic probe was The majority of the region is inhabited by 60 miles south east of Kirkuk and 26 miles used to check and log the health of the well. As the Kurds, who are a people of Indo- west of the Iranian border. It’s a pretty extreme a result of this investigation it was discovered European origin and make up an estimated environment in all senses of the word. The that there was an underground blow-out population of 25 to 30 million. The temperature in the desert during the day hits taking place, with severe cross-flow occurring capital is the city of Arbil and the region 145oF (62oC) - not an easy working environment between zones meaning the uncontrolled flow is officially governed by the Kurdistan for either the oil workers or the equipment they of hydrocarbons in the production. To make Regional Government (KRG). deploy. matters worse, in these extreme conditions, the The establishment of Kurdistan dates e-line perforating tool that had been run down back to March 1970 when an agreement Downhole meltdown the bore welded itself to the tubing wall. The for autonomy was established between When the Hunting team first arrived onsite the tools had to be left in the hole at 2,500m depth the Kurdish opposition and the Iraqi recorded well head pressure was 5,000psi and and the decision taken not to fish them out at government after years of heavy fighting. gas readings showed 35 per cent hydrogen this time but instead to send down a tubing At the end of the First Gulf War in 1992, sulphide gas present. This represents an cutter via the e-line. Unfortunately these tools amid the withdrawal of Iraqi forces from extremely dangerous environment in which also became stuck and had to be left in the hole three northern provinces, Iraqi Kurdistan to carry out any recovery mission. The first at a depth of 1,225m (4,000ft). emerged as an autonomous entity inside priority of the lead contractor was to ‘kill’ the At this point the decision was made to release Iraq with its own local government and well, equalising and managing the pressure the snubbing unit, or work-over rig, because parliament. by pumping in quantities of heavy mud and of its high costs and to continue the recovery Iraqi Kurdistan is now a parliamentary cement. This was initially achieved through the operation using the regular rig. Hunting democracy with a national assembly. snubbing or work-over unit, which had been Welltonic’s Field Supervisor Graeme Mortimer Duhok, Erbil and As Sulaymaniyah are the erected as part of the high pressure operation was able to enjoy a short break as rigging down three mountainous governorates covering that had gone wrong. During this phase of the snubbing unit, with its multiple jointed pipe a territory of around 40,000sq km and a the recovery operation the drill string itself assembly and then getting the rig back up, took population of about 4 million. became plugged and a Hunting Welltonic milling approximately two weeks. It is estimated that KRG-controlled parts assembly was run on coiled tubing, to mill out of Iraqi Kurdistan contain around 45bn the mud and cement. Unusually this was rigged Gone fishing barrels of oil, making it the sixth largest above the snubbing unit to a total height of Once that phase was accomplished, an reserve in the world. Extraction of these 137ft to save time and expense; however this external pipe cutter was run on a drill string reserves began in 2007 when the Kurdish created further complications. which performed a cut below the depth of the government solicited foreign companies to The operation afforded the opportunity uppermost lodged e-line tool, now prosaically invest in 40 new oil sites, with the hope to use Hunting Welltonic’s latest XTR 2-1/8 referred to as a fish. The e-line fish was then of increasing regional oil production over ‘extreme motor’; the team completed the milling recovered as a complete section within the cut the following five years to an enormous 1m operation to a depth of 2,500m (8,200ft). The drill pipe. Hunting returned to the site to carry barrels per day. new mud motors performed outstandingly out further fishing operations by coiled tubing well as the 19.7lb/gal mud had a solid content run through the rig to recover the e-line Bottom of 44 per cent. Most mud motors are only Hole Assembly and to perform additional further recommended to be used where the maximum milling and cleaning by mud motor to an even solid content percentage is up to 5 per cent. The greater depth.

11 Becoming more efficient is an easily coined corporate mnemonic but implementation is a more difficult task. Hunting has embedded a company- wide lean manufacturing strategy whose purpose is Travelling leanall embracing

Before After

hey say the journey of a thousand miles board, central to training, acts as a focus for begins with just a single step - and discussion and a medium for sharing ideas before Tthe principles behind introducing lean putting them into practice and is pictured here Ken Oberholz manufacturing in the business are really very with Ken and team leader John Fox. (left) and similar. Starting with the basics, which can be The most immediate change has probably team leader readily adopted, the approach begins with 5 been in shop floor organisation. Eliminating John Fox Ss - sort, straighten, shine, standardise and clutter, establishing ‘a place for everything sustain. Lean came into parlance in the 1990s and everything in its place’ not only helps staff and Japanese car manufacturer Toyota is often but also makes a dramatic difference in the seen as one of its leading proponents. appearance of a facility, as evidenced in the Ken Oberholz, Hunting’s lean manufacturing before and after pictures seen here. Six Sigma Champion, is tasked with looking Lean also has an important health and safety across the Hunting Energy portfolio to identify side to it. One of the areas that has already and help to implement lean opportunities. seen improvement is that the movement of Developing on practices embedded at the parts has now been raised off the floor using National Coupling Company prior to its sectional conveyors. The centre conveyor acquisition by Hunting, Ken has since been allows a machinist to rotate the parts to the focusing on what lean manufacturing techniques machine - but from a height that is much more can be enhanced throughout Hunting’s entire comfortable. Repetitive back strain injuries manufacturing businesses. from continued bending down to pick up materials are a common workplace complaint at that picture conservatively this equates to Better for business, better for staff for employees in the manufacturing sector. a week’s worth of production per machine per A typical example of the programme being applied Using the conveyors also means the process year. Not bad work for a straightforward and in practice, is provided by the Pressure Control has now eliminated 6ft of material handling easy to implement lean idea. Equipment (PCE) team at the Rankin Road facility. per part, or two minutes process time up and The key theory behind lean manufacturing is A photographic record of this was assembled and down. Over the course of a year this could equal that it is a never ending process - one in which is partially displayed here. The ubiquitous white several thousand machine minutes - even looking it is continually possible to refine and enhance

12 Before After

A case in point A customer order for a batch of dolly wheel assemblies provided the ideal chance to try out the 5 Ss, and look at waste identification and implementation of flow. The challenge was to see if an eight hour cycle time for each wheel on the turning centres could be improved upon. A team of three - Mill Operator Hoang Vo, Lathe Operator Simon Tran, and PCE Shop Supervisor Vinh Le - broke down the manufacturing process to identify areas for optimising the work flow. After consideration the team decided to use a mill, instead of the turning centre, to carry out the initial rough cutting process where a significant amount of metal has to be removed before the finished product can be turned. Thus an operation that normally takes two hours on a turning centre was completed in 30 minutes on the mill. The net gain was 1.5 machining hours for each wheel with a the drive towards saving time, improving total saving of 18 machining hours for the process and minimising waste. Ken’s mantra is entire job. For Hunting the benefit is clear: ‘Opportunity surrounds us, we just have to be on-time delivery performance was increased willing not to accept what we do today as the and cost savings could be measured and way we will do it tomorrow.’ Hunting personnel collected. It also meant less machine wear who have already seen what lean can do are in on the turning centre while also freeing up wholehearted agreement. the CNC lathe for alternative work.

13 sk a tourist what springs to mind Seasonal events include regular guided walks when they think of London and historic which examine the evolution of ‘Christmas Abuildings such as St Paul’s Cathedral, Through the Ages’ as well as Hyde Park’s the Houses of Parliament and the world’s most stunning Winter Wonderland extravaganza. The history of London’s famous waxworks museum would probably be top of the list. We rarely think about London’s A breath of fresh air Royal Parks provides a green spaces and yet its Royal Parks sprawl Owned by the Monarch in the right of the across 5,000 acres of the capital - making up Crown, London’s parks were originally designed fascinating backdrop to some of the city’s defining and most attractive for royal hunting chases and most remained features. Providing unparalleled opportunities enclosed until the 1660s, when monarchs some of the city’s famous for relaxation, entertainment and exercise, began to transform the deer parks into formal the park’s excellent horticulture and thriving gardens. However, it wasn’t until 1845 that landmarks - and even wildlife, as well as access to some of the these areas began to open up to the public and country’s most eminent buildings, statues and evolved into the popular places we know today. during the winter months memorials attract 37 million visitors each year. This intricate historical tapestry, interwoven The Royal Parks have also had their role with dramatic tales of celebration, mourning, there is plenty going on to to play in entertaining people through the love and rebellion, gives each of the eight Royal darkest, wettest and coldest months of the Parks a striking and unexpected individuality. keep visitors coming back year - a tradition that has continued to this day.

Walking in a winter wonderland

St James’s Park © Giles Barnard

14 The park of pleasure Created primarily to satisfy a royal passion for hunting, the land that became Hyde Park was seized by King Henry VIII from the monks of Westminster Abbey in 1536. Erecting a fence and damming the stream to make drinking ponds for the roaming deer, Henry organised regular hunting chases to entertain visiting ambassadors and foreign dignitaries. During the years of civil war (1642-51) parliamentary troops built forts in the park to help defend the city from Royalist attacks and remnants of these defensive earthworks are still evident today. The park was also used as a camping ground by many terrified city-dwellers fleeing the Great Plague as it swept through London in 1665. Following the restoration of the monarchy, Hyde Park regained its royal title and over the subsequent decades acquired a large lake called The Serpentine - the first man made lake in England purposely designed to look natural. Towards the 19th century, Hyde Park also became a venue for national celebrations. To mark the end of the Napoleonic Wars in 1814 for example, the Prince Regent organised a spectacular fireworks display, while 1851 saw the first Great Exhibition of culture and industry take place within these legendary grounds. Although now free of roaming deer, Hyde Park remains to this day largely as it was in the reign of King George IV, who created a monumental entrance at Hyde Park Corner comprising the Triumphal Screen as well as the Wellington Arch. Hyde Park’s Winter Wonderland is an annual highlight which sees the park transformed into a magical twinkling Christmas world, entertaining visitors of all ages. Aside from featuring London’s largest ice rink, this unique winter festival also includes a traditional German market, selling arts and crafts as well as authentic food and drink - from bratwurst to warming feuerzungebowle. A gentle ride in the heated pods of the illuminated observation wheel provides spectacular views across the city, while fairground attractions, a Winter Circus and a trip to Santa’s Grotto are hugely popular with the younger generations. Those wishing to really embrace the seasonal atmosphere can join in as the band strikes up to perform favourite carols from around the world.

Walking in a winter wonderland

15 Today Greenwich is a World Heritage Site, famous for Greenwich Mean Time. Last year the park hosted a 5km charity Santa run with runners getting into the festive spirit by wearing everything from Santa hats to full-blown Santa costumes. Jewel in the crown Providing the largest expanse of grass for sports within Central London, The Regent’s Park offers its visitors a wide variety of activities, the most popular of these are the Open Air Theatre and London Zoo. Heralded a masterpiece of landscape design, The Regent’s Park and accompanying Primrose Hill, were primarily a project of the Prince Regent, later King George IV, in the 19th century. Determined to make his mark, the area was designed as a vast circle comprising a lake, canal and new royal residence. Although the plans were never fully implemented, little has changed since local societies rented the spaces left by uncompleted villas. Queen’s garden NATIONAL ARCHIVES NATIONAL Three royal women with a passion for the Hunting ground outdoors crafted the The oldest of the Royal Parks, St James’s furthest. Although now surrounded by bustling elegant landscape of is bordered by three palaces: the most human habitation, the park’s remarkably INDUSFOTO LTD Kensington Gardens. ancient of these is Westminster, now more unchanged landscape, with its ancient trees, Following Queen commonly known as the Houses of Parliament; rolling hills and deep woodlands, has accordingly Mary’s lead, her Buckingham Palace, arguably the most famous, been designated a Site of Special Scientific sister Queen Anne and St James’s Palace itself. Interest and a National Nature Reserve. created an English- Evolving from a marshy watermeadow into style garden with a leper hospital in the 13th century, the park an accompanying was acquired to indulge Henry VIII’s passion for Orangery. Queen deer hunting and, later, Elizabeth I’s penchant Caroline made the for pageantry and pomp. It was the ‘Merrie most significant Monarch’ Charles II however, who redesigned the changes including taking 300 acres from area, laying lawns and planting avenues of trees. Hyde Park and making landscape history by separating the two with a ditch, known as a Gem of tranquillity ‘ha ha’ - a design innovation which soon was Just across the road from St James’s Park, copied all over the country. A haven for wildlife, The Green Park has an altogether different one of Kensington Gardens best loved and most character. The tranquil space, which stretches charming features is the bronze statue of Peter 40 acres between Constitution Hill and Pan which stands immortalised among other Piccadilly, was ironically first recorded as the notable figures such as Edward Jenner, who site of a rebellion against the marriage of Mary developed a vaccine for smallpox. Unarguably I and Philip II of Spain and was later a famous the most spectacular monument is the Albert spot for duelling. A peaceful retreat for people GILES BARNARD Memorial, dedicated by Queen Victoria following working, visiting or living in central London, The abundance of freely roaming deer, the death of the husband she loved so dearly, it plays an important link in this chain of open for which it is still most famous, was first aptly located opposite the Royal Albert concert spaces. Although now devoid of buildings and introduced by King Charles I in 1625. Large, hall. Most recently, the gardens were chosen with virtually no artefacts, The Green Park established trees were originally pollarded to as a fitting location for a children’s playground was once a fashionable venue boasting: an ice encourage the growth of tall branches, suitable dedicated to the memory of Diana, Princess of house, designed to refresh visitors with cold for timber while protecting them from grazing Wales, which opened in 2000. drinks in the summer; a series of lodges; two deer. A glance at the trees today will confirm magnificent temples, both of which exploded this technique, as even the lowest branches are Bushy headquarters during firework displays, and even a library. roughly the same height from the ground. A complex patchwork of English history, Bushy Originally known as Upper St James’s, The Park has the remains of medieval farmland, Green Park was officially renamed in 1746. The Royal gateway Tudor deer park, 17th century water gardens reason for this is still unknown. If popular tale Situated on the only hill overlooking the Thames, and wartime camps. Given to King Henry VIII in is to be believed, the name change may date Greenwich Park has always been a strategically conjunction with Hampton Court, it wasn’t until back to the reign of King Charles II whose wife, important location. With its leafy grassland the Second World War that the park really came on hearing that the King had picked flowers enclosures and impressive views across the City into its own - providing an ideal location for in the park for another woman, ordered the of London, the park also provides the setting for the production of food. From 1942, Bushy Park removal of every single flower. True or not, a number of historic buildings, such as the Royal became the site of a large US military base, to this very day, there have been no formal Naval College, the National Maritime Museum Camp Griffiss, which served as headquarters flowerbeds planted in The Green Park. and the Old Royal Observatory. Given in the 17th to a number of the Allied departments. Indeed century by King James I to his wife Anne - legend General Dwight Eisenhower was so averse Deer park has it as an apology for swearing at her when to working in the centre of town that he Spanning an enormous 2,500 acres, Richmond she accidentally shot one of his dogs - the park is designated the park the Supreme Headquarters Park is the largest of London’s parks and its also the birthplace of many past royals, including Allied Expeditionary Force centre for planning connection to royalty probably goes back the Henry VIII and daughters Mary I and Elizabeth I. the 1944 D-Day, Operation Overlord.

16 Introducing Innova

Innova’s core business is the manufacture of printed circuit boards for downhole logging tools used in the wellbore. Founder and President Trey Cook sets out the background and direction of the company following its acquisition by Hunting in summer 2010

nnova Electronics was established in 1989, Powering up coincidentally the same year as Hunting PLC Iwas formed as a holding company. Its aim The research and development phase of was to supply high voltage power supplies for designing the power supply took Innova two nuclear detectors used in the oil and gas years since the opportunity envisioned was a exploration industry. This choice of power particularly difficult one to address. This was product was made because the existing hardly surprising with a downhole working offerings were among the most unreliable in this environment subject to extreme temperatures, part of the upstream business. After an corrosive chemical attack and severely extensive search for a company capable of constricted packaging parameters. However, producing this type of product - in a very small after two gruelling years the company started package, able to operate at 200oC - the receiving orders and producing power supplies. inescapable conclusion was drawn that none Continued attention to detail and market needs existed and there were no viable alternatives. meant that by the turn of the millennium Innova Innova had found its reason to be, the company had become the main outside supplier of this was soon formed and a start made into the type of product in the oil and gas industry. market for geophysical measurement-while- Contract killers drilling and logging-while-drilling (MWD/LWD) devices for open or cased hole wells. This was While it was in the company’s business plan an activity, along with the manufacturing of the to develop and market power supplies to this products that had been undertaken by the major particular sector, another business opportunity oil service companies, in their various arose. By the mid 1990s, the term ‘outsourcing’ iterations, during the previous fifty years. was first heard. The large oil service companies

17 quickly saw the light, defining themselves as many potential applications the company did service providers and looking to improve their not stop at this one solution. For the different focus on their core competences. The flip side markets of high temperature, high shock and was that manufacturing of both mechanical and vibration, the company developed processes for electrical components were determined to be each individual segment and quickly gained the more efficiently produced by third parties. There reputation as the leaders for producing highly were a number of reasons for this. (See text box reliable products. By the early 2000s, most far right) of the customer community had closed their internal electronic operations and Innova had Way ahead become the largest strategic electrical contract So it was that in 1994 Innova started a contract manufacturer to the entire industry. manufacturing division. While most companies in this situation initially planned to mimic their Side step customer’s organisation, Innova set out on a Innova was sold by the original owners in March different path. Knowing what the customers had of 2006 but, with Trey Cook still in the driving done in the past was fine but the big question seat, the company continued to further its was ‘what will they need to be doing in five aims and made the first move into mechanical years time?’ The oilfield mindset at the time contract work with the establishment of Extel Trey Cook was still stuck in the 70s and early 80s, even Precision Machining. The purpose was to while elsewhere the computer age was ramping expand the capability for the business partner up and the technologies employed were rapidly relationships by providing one stop shopping for changing. Understanding where the industry both electrical and mechanical contract work. In had come from, Innova set out to define the this way a major step had been taken towards in a global environment. Where the oil service future of the Electronic Manufacturing Services the supply of the whole tool through the industry once was serviced out of Houston, (EMS) oilfield/high reliability market. It was provision of housing and casing. After building a Texas, the future will address each region of the first contract manufacturing company in state of the art 88,000sq ft facility, Extel opened the world as its own unique opportunity. The its sector to utilise surface mounted equipment for business in mid 2007. The timing was a little prospect of combining operations with the Well specifically for high temperature applications. awkward with the industry taking a cyclical dip, Construction division of Hunting should help It also put into practice quality assurance but the rationale and fundamentals for the two clarify and hone the ambitions of the enlarged equipment, which had typically been only used businesses proved solid. The next milestone in group. Coming from a background primarily by large EMS companies such as flying probe the plan lay just ahead. as a mechanical supplier and manufacturer testing, automated optical inspection and AXI with global operations, Hunting now has the (automated x-ray inspection). Hunting ambition scope to access even greater opportunities. To further the technical approach, much Fast forward to 2010, and how Jim Johnson, With the acquisition of Innova Electronics, effort was put into process and soldering Director of Hunting Energy, recognised the Hunting stands to be a key contract supplier of technologies. Innova patented the unique use opportunity presented by Innova. The prevailing mechanical, electrical and integrated products of a solder alloy which has been used by many state of the industry and international markets on a global basis furthering its plans in the down hole companies. Since the industry has demand that corporations operate increasingly upstream international oil and gas market.

18 The need to outsource 1. By moving products outside to be manufactured, the companies could better focus on what made them different to their customers. 2. Cost controls were easier. It was simpler to figure out what a purchase order was raised for and calculate a cost comparison than to do the work internally. 3. Contracted companies were typically more proficient at the type of work targeted since it was their bread and butter, while effective supply chain management ensured the market’s competitiveness. 4. The investment needed to keep up with changing technologies. By going to outside manufacturers the oil and gas industry, which was typically lagging behind other sectors, could get exposure to other market influences not otherwise likely to be accessed. 5. Effective employee management. The oil and gas industry was very volatile in the 1980s and 1990s and layoffs were followed by rapid upticks in the business cycle only to be followed by another set of layoffs. This made it difficult to keep a consistent, trained and motivated workforce. By using contract manufacturers, the idea was that outside companies would be better placed to manage the cycle through a broader spread of clients and workflow.

19 Decathlon Staff from Hunting’s Scottish facilities decided dream to compete in the 2010 Aberdeen Corporate Decathlon. Here’s what happened…

he Aberdeen Corporate Decathlon is a year-long, multi activity competition and Tfundraiser covering ten sports and social events; it kicks off in February with one event taking place each month until October when it culminates with a glittering Sports Ball in aid of children’s charity Cash for Kids. Team Hunting drew on the talents and resources of staff from all the different divisions in Aberdeen - a great way to encourage team work, team building and having fun. Hunting’s Decathlon captain Ingrid McNiven organised and cajoled the disparate members into their various teams and ensured everyone was kitted out to represent the company in the smartest possible strip.

20 Extracts from the Tartan force Team Hunting fielded a 16-strong squad for Captain’s log …. the much anticipated Shell Highland Games’ Strictly Hunting section of the decathlon. The day kicked off For the first time ever, Hunting deployed a with everyone attempting the Highland fling, Hitting the bullseye team of ten brave souls to show off their dressed in ‘See-you Jimmy wigs’ and a splash Darts came first. Stepping up to the oche at ballroom dancing skills. Seen as the highlight o’ tartan. It was an eye popping sight to see 16 the Douglas Hotel, one of the team - Deborah of the ActivityMix stage of the decathlon, adults trying to copy three very talented young Cumming - dazzled with her outfit as much as this was no soft option. After an enormous Highland dancers. As the day progressed the her darts’ skills. Dressed to impress in a big amount of training, and even a couple of team clocked up some very fine results. Making afro wig, with a Hunting hat pinned onto the broken ribs, Hunting’s dancers squared it through to the finals were Jamie Clark (shot top, gold hoop earrings, false eyelashes and up to the challenge on the big night. With put and long jump), Bridget Upton (long jump blue sparkly eye shadow, she looked every a packed venue completely sold out, each and 100m sprint) and Miroslav Richter (100m part the 70s Diva and the other teams loved couple performed their routine twice. In spite sprint). Finally Neil Cumming looked very much it. Adding to the fun atmosphere, the afro wig of only one month of training, Ingrid McNiven the professional getting two perfect 12’s in the meant that no-one could see the dart board and Jamie Clarke Rumba’d their way into the caber tossing contest. when Deborah was playing and her darts kept semi-finals while Louise and Bill McKay made The tug of war was the toughest physical sticking to the wig when she pulled her arm it to third place dancing the Waltz. Linda and challenge of the day; it took sheer strength and back - much to the audience’s amusement. Niall also demonstrated their Quickstep skills immense willpower to win and the team fought The team made it through to the second round while Bridget and Joe Upton sashayed through like Celtic warriors through four gruelling but were unlucky to lose out to Maersk in the the Cha Cha Cha, and Agata Goworek and rounds before the contest was finally over. knock out phase. In spite of no victory prize, it Kenny Jamieson attacked the Tango Serida A very sociable day was topped off when was felt that the team could have taken gold for with gusto. It was a night to remember for both Team Hunting was handed the trophy for a attitude and sportsmanship alone. the dancers and the supporters cheering them magnificent third place during the awards on. If there had been a prize for the loudest ceremony - to a suitably frenzied reception supporters, Team Hunting would have been from supporters and team alike. Rallying around sure to have won. The varied ages and ability of the Hunting Badminton players meant the team was placed Paddling upstream into the ominously named ‘Group of Death’. A Tour d’Aberdeen The canoeists started out with a lucky break good few wins were notched up early on taking Hunting’s intrepid mountain bikers had to race in the weather - it stopped raining as they the team into a plate play-off which it narrowly to pre-set locations, navigating with maps, set out on Knockburn Loch (near Banchory) lost to Expro, the overall winners being then on arrival they had to punch a score card to complete their four challenges. The main Clariant. The team spirit and effort expended with a unique code to prove they had been aim was not to capsize since anyone who did by both players and supporters at Aberdeen’s there. The further away the location, the more was automatically disqualified and lost all Sport Village was tremendous and many have points on offer. The team split into two groups: their points. The challenges were a water polo continued to meet weekly in preparation for the the first group targeted the lower scoring match, two time trials - the first for tethered 2011 Decathlon. destinations, while the second targeted the canoe and then for a figure of eight race around higher scoring distant ones with higher points. two buoys - and finally a surpisingly tough The challenge had to be completed in just two orienteering test. The first two challenges went hours and the whole team had to communicate without a hitch but unfortunately, during the with each other regularly to give updates. tricky disembarking stage of the orienteering Lady luck was not shining on this occasion and challenge, two (nameless) members of the disaster struck with an injury that so hobbled team managed to capsize. Even so the teams progress that by the time the two groups managed a creditable score and finished the crossed the finish line, they were 25 minutes day if not dry, then certainly on a high. over their alotted span which cost them dear in points. In spite of this set back, everyone really enjoyed the challenge and were glad to have taken part - the warm and sunny day certainly helped and the ice creams were of some solace.

21 Scrum down Volleyball The Aberdeen Sports Ball The touch rugby event was always destined to Seven worried volleyball players arrived at the Bearing in mind that 30 corporate teams be one of the toughest especially since many sports hall to compete in the last of the 2010 took part in this year’s challenge, with up to of the team had never even picked up the Decathlon events. Expectations were low. The 100 participants apiece, the pool of talent is oval ball. A serious training regime ensued idea was to have a bit of fun and to represent enormous. In order to register in this highly on every Thursday evening ten weeks before the company in style. The first game against competitive environment each company must the tournament at Duthie Park. Requiring Subsea 7 ended, to the team’s amazement, in a ask of its members to dig deeply into their different instincts to traditional rugby, the team convincing win. Putting this down to luck, the personal reserves of ambition, sportsmanship practised attacking and defending drills in volleyballers then narrowly beat Logica before and teamwork. The captains have a particular preparation for the pre-tournament ‘friendlies’ the final game in this section against one of responsibility to bring their teams to the fore, with other Decathlon challenge teams and the Hunting’s major customers Maersk. From initial promoting and ensuring full participation. It help of the Scottish Touch Association. Key to doubts and nerves the team was starting to is therefore all to the credit of individuals in success in this game is speed in attack, quick sense success, beating Maersk soundly by 36 Team Hunting and Ingrid McNiven that she was re-organisation and retreat in defence. There’s points to 19, and progressing out of the group shortlisted as a finalist for Captain of the Year no doubt it was a steep learning curve in the in first place. and the team firmly established in the peon early days but the team made pleasing progress With adrenaline pumping, the team was of participating companies. Team Hunting’s in such a short space of time. Morale received beginning to smell victory and dared to wonder nominated player of the year was Jenny Clyne. an extra boost two days before the event when if they could actually win the tournament. After the awards it was clearly time for it was discovered that the defending champions Next up was Senergy and the game began everyone to let their hair down, celebrate and had pulled out. The game was on and first up brilliantly with the team opening up a 17 point party as the Ceilidh and disco played on late was Senergy. lead. Then the heavens opened and victory into the night. A nervous first half saw the team concede looked like it might be snatched away with Roll on 2011! four points, however in the second they the team struggling to return points. Looking defended well, conceding only a single point defeat in the face the players resolutely held and managing to score themselves to keep the on to a 48 to 45 points win. Gone were the final result down to 1-5. In the last pool against early feelings of only having a bit of fun, the Subsea 7, a much fancied young and quick team now had its sights firmly set on the final. team appeared to be heading for the top of Sadly what followed dashed those dreams the pool table. However, Team Hunting players with a hard fought but two point defeat by were not prepared to roll over that easily and PricewaterhouseCoopers. With spirits flagging this ended up being a cracker of a game with the team then lost to Halliburton ending some heroic defending and the scoring of two up fourth over all in the event - however, tries to draw level at 2-2 before losing two late considering their initial ambitions for the day points in the fading moments to end up at 2-4 this was a huge achievement. Alas from such down. an inauspicious beginning and subsequent hint Qualifying for the plate competition saw the of promise, there will be no happy prospect for team paired against Bibby Offshore. By this next year since volleyball has been removed time tiring legs on a warm sunny afternoon and from the 2011 competition. speedy opposition wingers got the better of the players who made their exit and repaired for a refreshing drink at the bar to discuss next Personal health challenge year’s competition and team tactics. In this event teams of six are assessed with different measurements taken at the beginning of the challenge and Bowled over again after eight weeks. Tensions were running high as competitors The cumulative score arrived for lawn bowls - the eighth event in the of the top four in each decathlon schedule - particularly because the team goes towards rain showed no sign of letting up and continued to an average, which pour down even when the first games kicked off. determines a team’s Steady hands got off to a good start with overall Decathlon a win against Hess while the next game saw position. The top the team coming back from being three shots two from Team down. Colin Dornan saved the day, ending on Hunting were: Larry a draw, with a perfect bowl that blocked the Gill and Deborah three scoring bowls that had looked set to win Cumming with a Subocean the game. The final game got off to a highly impressive good start but eventually Baker Hughes proved improvement too strong and came out group winners with a percentage of score of 6-2. 33.9 and 26 The first opponents in the plate competition respectively. were Clariant; after numerous ‘distance measuring’ calls from the umpire, Team Hunting came out on top. The team was not so lucky with its next challengers, Bibby Offshore, which left it in the play offs for the final game of the day. Morale and honour were finally restored against TAQA in a tough but thoroughly enjoyable round which saw Hunting at last triumph with third place silverware.

22 Tools of the trade

uilding on the success of its US mud as traditional steel composition. where possible, thus reducing costs from the motor business, and with a growing In order to fully support this new business supply chain and ultimately reducing the cost Bfocus on the upstream sector, Hunting venture, Hunting has secured extensive of drilling. has recently established a new drilling tools workshop and office facilities, enabling the company, Hunting Equipment Management company to undertake fabrication, inspection Extending tool life Services (HEMS) in Altens, Aberdeen. This and management of the tools with minimal Rotational wear is an inherent problem that new venture has been created to satisfy subcontracting. affects the life of all down hole tools. To demand in the drilling tool rental market for Irene Holden, HEMS General Manager, counteract this, Hunting’s in-house Technical both the North Sea and other energy markets and her dedicated team have over two Manager Doug Stuart has designed a wear in the eastern hemisphere. hundred years’ combined experience in the band application welding procedure for The products in question are used within manufacture and rental of drilling tools. Using Hunting’s flexi drill collars, this application the construction phase of a well to assist their specialist knowledge of the drilling and procedure is now certified by Fearnley the drilling process. For example, drill market, Irene’s team has commissioned a Procter to conform to NS1/NS2 industry collars are heavy walled sections of pipe - large inventory of equipment suitable for specs. Unlike the hard banding that is placed behind the drill bit - to add weight 6in to 42in hole sizes. All of the equipment currently used in the market, this proprietary and downward force. Hole opener bits are is brand new and manufactured to NS1 application is suitable for non-magnetic drill designed specifically for increasing the size of spec, the highest industry standard for the collars as it does not affect the integrity of the a pre-drilled hole to a larger diameter. Other manufacture of these down hole tools. non-magnetic properties of the equipment. products include stabilizers; these centre The wear bands will restrict excessive wear the bottom hole assembly and make the load Tracking equipment to the flexi tool joints, enabling cost effective more uniformly distributed. Efficient control is vital to optimising provision of the flexi collars while saving the tool usage between assets, and HEMS customer excessive wear charges. Non-magnetic technology will provide an electronic web based As wellbore geology becomes increasingly management portal specifically designed to Future prospects complex, steerable drill bits are frequently enable customers to track tools hired and/ HEMS is a welcome addition to the Hunting used to thread their way to the payzone. or managed by HEMS, including access drilling tools portfolio. With a firm focus on To achieve this, the use of non-magnetic to associated documentation. Using this supplying drilling operations HEMS provides material becomes critical to prevent system, Hunting can also manage customer a solid platform for future development of interference with directional measurement equipment, promoting its visibility. It also other complementary group interests and devices. Accordingly, Hunting offers its enables rig co-ordinators to see what is on new designs in the construction phase of the drilling range in non-magnetic steel as well other platforms, allowing inter-rig transfers wellbore.

23 Relocationrelocationrelocation

Fordoun machine shop

Badentoy

lans are afoot to integrate Hunting’s already undergone a significant redevelopment Benefits all round multiple locations around Aberdeen over the last couple of years to create a world Pinto two of the existing sites - with the class pipe management facility. Extending this The expertise available for sharing across the expectation of further expansion at each. The capability, with a new large pipe machine shop divisions and legacy companies should simplify idea is to create a regional hub in support and associated facilities, will allow Hunting to the management structure and create new of the North Sea and Europe, through the provide further options for global OCTG clients. opportunities for existing and an increased establishment of two distinct centres of High specification casing and tubing with number of staff. excellence. The first, at Badentoy, will specialise premium connections, speciality threading, OEM Significantly reduced traffic in terms of truck in the design, manufacture and administration and accessory manufacturing to support OCTG movements between the facilities is envisaged, as of all Hunting products and the other, based products will all now be consolidated on one is improved commuting times between the sites at Fordoun, will concentrate on OCTG as this site. for staff with considerable savings as a result. facility is better suited for large pipe logistics. Project Harper is now well under way. Introducing some of the latest technological Known internally as Project Harper, the move Building work commenced in September last advancement in terms of materials handling is also expected to encourage synergies within year and will continue through, in all weathers, systems will, in turn, reduce manual handling and both Hunting Energy Services (UK) and Hunting until the planned completion in late summer of raise safety standards accordingly. Energy Services (Well Intervention’s) existing this year. operations. It will create sufficient capacity for general expansion and also incorporates production of other Hunting global product lines. A90 Clustered at Badentoy

Hunting Energy Services (Well Intervention) A96 Hunting Bridge of Don will move from its split premises at the Bridge of Don into part of the proposed extended Aberdeen office facility and specialised workshop on the A956 Badentoy Industrial Estate, where Hunting Hunting Altens Energy Services (UK) is currently located. There Altens they will be joined by coiled tubing specialists Hunting Welltonic. This site near Portlethen, just A90 Portlethen south of the main Aberdeen conurbation has Hunting Badentoy been growing steadily since the facility opened there in 1993 and has effectively become the corporate and administrative focus for Stonehaven all Hunting’s Scottish interests. An extended A90 workshop and office accommodation - taking Fordoun Hunting Fordoun up 1259sq m and 2835sq m respectively - are A92 being built to ensure there is enough existing Laurencekirk space and also room for future growth. Going large at Fordoun

Meanwhile the company’s existing oilfield casing A90 and tubing inspection and threading lines from Hunting Montrose Badentoy and leased sites at Montrose and Montrose Edzell will now be co-located with a brand new manufacturing facility at Fordoun. This site has A92

24 Our Hunting Community

One company JP Morgan Chase Challenge one website Brave volunteers from Hunting’s London office were among 13,363 other racers, joggers and walkers taking part in last summer’s JP Morgan Chase Challenge, which Hunting’s corporate website has been was staged on July 6 2010 in the capital’s Battersea Park. On the day, Team Hunting unified for the first time to encompass was led valiantly around the 5.6km course by Chris Berris, who completed the circuit the whole of the Hunting PLC business in an impressive 28 minutes, followed by Beverley Barker, Zoe Kubiak, Kershnee portfolio. With a new sophisticated Naicker, Daisy Thomas, Claire Slatter and Michael Lucy together with a noisy Hunting and contemporary design, each of the supporters’ club. Company Captain Ben Willey was responsible for coordinating the company’s main areas of focus - Well eight group members, as well as organising especially themed T-shirts for the run. Construction, Well Completion and Well All proceeds raised from the event went towards the Help a London Child appeal, a Intervention - have been highlighted charity which was founded in 1975 by Lord Attenborough CBE, to assist and give in easy-to-navigate sections, with an opportunities to thousands of London’s children and young people experiencing abuse, introduction and description of the homelessness, disability, poverty and illness. products used in each division. Visitors Announcement to the website are also able to browse a selection of animated videos, which David Barr has been appointed a non- not only help with staff training but also executive Director of Hunting PLC. A provide a visual explanation of the major US citizen, he is a former executive of Hunting products that are employed in Baker Hughes Inc., where most recently and about the wellbore. he held the position of Group President of Completion and Production. Prior to this he was Group President of Drilling and Evaluation and also a Division President of Baker Atlas. David is currently non-executive Chairman of Logan International, a Canadian-listed oil services group, a non-executive Director of ION Geophysical Corporation and a Director of Probe Technologies. David will join the Audit, Remuneration and Nomination committees.

ADIPEC 2010 Last November Hunting Energy Services showcased its comprehensive range of thru-tubing tools and equipment at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2010. Held at The Abu Dhabi National Exhibition Centre, which covers an enormous 31,000sq m, the event was considered by all to be an overwhelming success; more than 45,000 visitors from around the world attended.

Oilfield Helping Hands Hunting PLC’s nominated corporate charity for 2010, Oilfield Helping Hands (OHH), which assists those in the energy industry who find themselves in crisis through no fault of their own, has won an award for the Best Outreach Programme at the 2010 World Oil Awards. The ceremony, a black-tie gala dinner which took place in Houston, was hosted by World Oil magazine and attended by 300 leading industry figures. OHH was started in 2003 by a group of oilfield friends who held a sporting clay tournament to help support the family of a former colleague, who had fallen victim to a terminal illness. A huge success, the event gradually gained momentum as word spread of the organisation. Most recently, OHH staged a clay shooting tournament to benefit the families of those who died on the Deepwater Horizon drilling rig in April last year. As well as honouring the memory of those who died and showing support for those devastated by the loss, the OHH proceeds are also attributed to the survivors whose lives have been changed forever. The Deepwater clay shoot raised $150,000 and OHH was able to announce recently that is has reached the outstanding $1million mark in terms of distributed funds.

25 Our Hunting Community

Appointments, Promotions and Retirements

Hunting PLC London Hunting Energy Services UK Hunting Energy Services: Retirement

Bruce Ferguson has been promoted to Managing Director of Hunting Energy Services in Aberdeen. Bruce joined Hunting in 1994 as a trainee accountant, qualifying in 1997. He was appointed Group Controller in 2001 looking after the international operations until becoming Jeremy Simpson has been appointed to the position HES UK Finance Director in 2008. Bruce will be of Director of Finance and will be based at Cockspur responsible for the European and Middle East regions. Street. Joining the Company from Avery Dennison, where he was a divisional Vice President, Finance, Hunting Energy Services UK Jeremy has previously held senior roles with Smiths Following more than 30 years with HES, the Group Plc and KPMG Corporate Finance. He will be irrepressible Sam McClements retired from the company responsible for the day to day financial management at the end of last year. His passion and admirable of Hunting Group, including financial reporting, tax, work ethic will remain as his legacy. However Sam treasury and IT. is staying with the company as a Senior Advisor and Board member throughout 2011. Starting in 1980 as Hunting Manufacturing USA Manufacturing Manager, he was appointed head of sales Paul Matzke has been promoted to the post of USM in 1990, Director of OCTG in 1991 and the following Technical Coordinator and will provide technical year International Director. In this capacity he was manufacturing support to all Hunting facilities. The role stationed in Singapore for six years until 2000, having also assists with all commercial efforts regarding special gained his MSC in a company sponsored Corporate projects, design, tooling and equipment. Based at the Leadership programme, before being appointed Woodlawn Ranch Road facility, Paul’s long history with Executive Director. Hunting started in 1999 when the company purchased A hard act to follow, in his stead Bruce Ferguson has Al’s Machine. been appointed. Bruce moves from HES UK Finance to Managing Director while Tom Jackson has been Tubular Protection USA promoted to Chief Operating Officer. Tom Jackson has become Chief Operating Officer of Stephen Joyce has been promoted to General Manager Hunting Energy Services in Aberdeen. Tom entered the Gibson’s achievers of Hunting’s Tubular Protector business. Starting with oil industry in 1978 where he held various roles with Hunting in 2001, Stephen worked first in inside sales for Shell, Halliburton and Baker Oil Tools. Moving to the the premium connection division before being promoted UK from America with Baker in 1990, Tom first became to outside sales and now General Manager. Stephen will acquainted with Hunting. In 1997 he accepted the be based at the Highway 90 facility. position of General Manager of Sales and Engineering with Hunting and was granted UK citizenship in 2005. Hunting Trenchless USA His current role means he will be accountable for all Klane Kirby has been promoted to General Manager of operating activities for Hunting Energy Services in the Hunting’s Trenchless Division, bringing more than 22 UK, Europe and the Middle East. years of underground construction business experience in senior management positions. Klane’s tenure with industry leaders will help enhance the depth and breadth of the Hunting Trenchless offering to the industry.

Long service Celebrating 21 years work at Hunting, Bernard Clayton and Mark Flockhart have been with Hunting Energy Services UK since 1989. Ron Martin retired last year Russell Taylor, Tim Clark, Will Proudfoot and Bello Tukur after spending a magnificent 30 years with the company. from Gibson Shipbrokers have passed their Institute We all wish him every happiness in the future. of Chartered Shipbrokers (ICS) exams. Bello has now completed the entire ICS course and is able to apply for membership to the ICS, the only internationally And at Hunting HQ in Cockspur Street Dean Mitchell Dean Mitchell recognised professional body in the maritime arena is also celebrating going into his 22nd year with the which represents shipbrokers, ship managers and company. marine agents around the world.

26 Hunting ‘On The Way’ New jurors announced There was an air of anticipation one sunny Saturday afternoon last summer as the Three respected members of America’s national arts community will serve as jurors Hunting On The Way team set off from Milngavie along the famous West Highland Way, for the 2011 Hunting Art Prize. Rachael Blackburn Cozad, Director at the Kemper to stroll through the scenic Scottish countryside. The team decided to take part in this Museum of Contemporary Art in Kansas City, Missouri; Carol Damian, Director at the event to raise funds for Cancer Research UK and the Children’s Hospice Association Patricia and Phillip Frost Art Museum, Florida International University, Miami; and Scotland. Although prepared for some breathtaking scenery, the team was blissfully Julien Robson, Curator of Contemporary Art at the Pennsylvania Academy of Fine Arts unaware of the adventures that awaited them. in Philadelphia, will be entrusted to select both the finalists and the winner of the prize Fooled by the relatively easy first leg of the journey, the team was soon dismayed in the two-tiered judging process, which begins early this year. on waking up to rain, only to be followed by the challenging climb up the unforgiving The recipient of the $50,000 award will be announced at the 2011 Hunting Art Prize Conic Hill - without even the distraction of the alleged glorious sights, hidden by gala on April 30 in Houston. The Hunting Art Prize is open to any Texas-based artist relentless drizzle and mist. However, their ordeal was not yet over as, heading north who is 18 years or older. More information on the competition can be found at after Loch Lomond, the team unwittingly entered the realm of the infamous Scottish www.huntingartprize.com. midge. Descending in their thousands and undeterred by industrial strength repellent, the tiny flying creatures were soon feasting on all areas of exposed skin, leaving the team feeling sore, swollen and thoroughly miserable. Thankfully both the weather and team spirits soon picked up and much camaraderie was shared over the rest of the whopping 98 mile hike. And, as the Fort William finishing line grew steadily closer, all walkers On The Way were filled with a final sense of achievement, raising over £6,000 for the two charities.

Pictured: Stan and Doreen Work, Diane and Michelle Grubb, Sam and Margaret McClements, Bruce Ferguson, Graham Vickers, Alun Roberts and Ron Martin

Andrew Long ‘Self Portrait for Change’

Conroe open for business The all new Hunting Drilling Tools facility at Conroe, Texas has been commissioned and is now open for business following the official opening held in November. A full A new digital welding machine and hard banding process has been installed for range of rental products will be serviced from this facility suited to the local geology Hunting Drilling Tools at the Nisku facility in Edmonton, Canada to enhance the non- and customer requirements. magnetic drill collar and associated product lines

27 Hunting PLC 3 Cockspur Street, London SW1Y 5BQ, UK Tel +44 (0) 20 7321 0123 Fax +44 (0) 20 7839 2072 www.huntingplc.com

Hunting PLC (USA) 24 Waterway, Suite 700, The Woodlands, Houston, Texas 77380, USA Tel +1 713 595 2950 Fax +1 281 907 5075

Hunting Energy (North America) 2 Northpoint Drive, Suite 400, Houston Texas 77060, USA Tel +1 281 442 7382 Fax +1 281 442 5771

Hunting Energy (Europe) Badentoy Avenue, Badentoy Park, Porthlethen Aberdeen AB12 4Y, UK Tel +44 (0) 1224 787000 Fax +44 (0) 1224 787100

Hunting Energy (Middle East) 1505, LOB 19 Jebel Ali Free Zone PO Box 261929 Dubai, UAE Tel +971 4 8865 799 Fax +971 4 8865 784

Hunting Energy (Asia) 34 Benoi Road, Singapore 629901, Singapore Tel +65 (0) 686 16176 Fax +65 (0) 686 15010

Gibson Shipbrokers 16 Ely Place, London EC1P 1HP, UK Tel +44 (0) 20 7667 1000 Fax +44 (0) 20 7430 0571