WINTER 2011/12 No181 IN ISSUE 181 WINTER 2011/12

4 Yangtze Delta 10 Charged with 14 Let the Games 16 Maine pearl potential begin attraction Jiangsu Province and Perforating gun systems to The final countdown to the The acquisition of Dearborn in neighbouring Shanghai provide boost horizontal production Olympic Games has begun the scenic northeastern USA a fascinating backdrop for are central to Hunting’s Titan and, as the world stirs in enhances Hunting’s presence Hunting’s Wuxi facility, at the acquisition, which fits with the anticipation, we take a look at in high precision manufacturing heart of China’s burgeoning strategy to expand wellbore how London is preparing to for the MWD/LWD market economy products around the world stage this international event

20 Challenging 22 Take it to 23 Lean and clean 24 News from convention the limit The relentless drive to capture our community lean manufacturing efficiencies The United States’ recent An Australian drilling operation is proving successful in many advances into shale oil and gas saw Hunting Welltonic’s design situations, exemplified by the production have captured team step up to a challenge efforts of staff at the Sam international attention, leading Houston Parkway facility the way to similar initiatives in other parts of the world

Hunting Review; the external house magazine of Hunting PLC 3 Cockspur Street, London SW1Y 5BQ, UK [email protected] Edited by Victoria Bailey and Georgia Langdon, Campaign PR. [email protected] Designed by Anthony B Ainley MCSD [email protected] Produced and printed by Duffield Printers Ltd [email protected] Cover Yuyuan Gardens in Shanghai Photo: David Hunting

2 A matter of balance There has been something of a sea change in perceptions about energy of late. While the quest for a low-emission environment feels intrinsically right, the political cantering after the bandwagon of the renewable sector looks set to be reined in by the practical needs of the ordinary citizen.

It’s not just that the global financial crisis shook the more outlandish claims of the renewable outriders; the advent of the shale gas boom changed the landscape completely. Its sheer abundance in the US means that natural gas import terminals are now looking for export potential. In case it goes un-noted, bucking the downward trend, more than one in five of new private sector jobs since 2003 have been in the oil and gas sector. Where the US has benefitted, others aspire. China has particular energy needs, proven shale deposits and Hunting’s strategic positioning has led to the expansion of the Wuxi facility, which is orientated to domestic demand. In this issue of the Review we look at the context in which that investment has been made.

Existing oil and gas technology and techniques are proven and combined with affordability. With this in mind, we welcome into the Hunting fold new members who have arrived during our busiest and largest ever acquisition period. It gives real pleasure to embrace this larger community which shares our sense of drive and purpose; we all have much to learn from each other. The Titan group and its perforating systems are introduced in these pages as are the folks from Dearborn, who specialise in precision MWD/LWD products. We look forward to covering more aspects of their activities in due course as indeed we do for other new colleagues also from the world of advanced manufacturing. In the meantime we round up with news from across our existing company and note the healthy section on well-earned promotions and new appointments.

I’d like to reflect on the year gone by and also take this opportunity to wish all our staff, families and dependents, as well as our wider readership a happy and healthy start to 2012.

3 Hunting’s largest manufacturing facility is in the buoyant Yangtze Chinese province of Jiangsu. We look at the context in which this investment has been Delta made and how the industrial and cultural heritage of this region pearl is driving its prosperity

4 ome to Hunting’s newly opened Wuxi prosperity. Two southern cities, Suzhou and facility, China’s ancient region of Jiangsu Wuxi, in particular have undergone extensive His considered one of the country’s most development in recent times. With the help of economically, culturally and technologically a Chinese-Singapore government initiative in developed areas. Located in the Yangtze River the 1990s these areas were transformed into Delta, the province is an active hub of economic economic powerhouses and today are among development. This is most readily experienced China’s top 10 for gross domestic product. at street level with bustling retail centres, traffic filled highways and the ever present cacophony Shanghai rising of construction sites. In spite of a reported Shanghai, which borders Jiangsu to the hiatus, this economic boom is still underpinned west and the East China Sea to the east, by a vast, robust manufacturing base that runs is undoubtedly the region’s liveliest city. the gamut of industry. In the region’s self- Considered to be the commercial, industrial proclaimed commercial and financial capital, and financial centre of mainland China, this Shanghai, manufacturing still forms nearly 40 energetic metropolis is not only a hotbed per cent of the total output. of commercial activity but also a popular Under the rule of the Song Dynasty (960- destination for tourists seeking an exuberant 1279 AD), Jiangsu first emerged as a key centre urban experience. It is an interesting side note of China’s trade. In the following centuries that, as a political hotbed, it was also the birth the province continued to flourish - becoming place of the revolutionary Chinese communist synonymous with luxury and opulence and party. The distinctive skyline has been carved it remains one of the richest regions today. out by countless contemporary constructions, Significant financial reforms, introduced in while glittering new projects continue to emerge the latter part of the 20th century by Deng as if to celebrate the joy of development for Xiaoping, further established Jiangsu as its own sake - an expression of the city’s a prime example of the country’s growing investment in its ambitious infrastructure.

5 The estimated population in the Shanghai million container units in 2010, advancing the municipality is more than 23 million and the city’s ambition to become a global centre for developed area covers 6,000sq km. A seamless international shipping and associated marine transportation system is crucial to keep the industries. Automotive manufacturing has constant crowds moving and the city’s urban proved another key industry, which generates rail system, the Shanghai metro, is rapidly significant economic success and provides an expanding to accommodate rising demand. The important source of employment for Shanghai’s high speed overland network also links airports workforce. and other key cities, while regular pedestrian ferries cut a busy path across the Huangpu Wuxi Prefecture River - a useful alternative when taxis are Less than 150km inland is the city of Wuxi. scarce in the city. Dubbed ‘Little Shanghai’, it was founded by two Unlike many of its neighbours, Shanghai has fugitive princes 3,000 years ago. Agriculture, little ancient history. Only two hundred years rice, silk and fish formed the earliest of the ago the area was a simple silty corner of the city’s industries, which grew considerably Yangtze Delta where indigenous fishermen eked with the construction of the Grand Canal - a subsistence living, while a rapacious pack under the Sui Dynasty (581-618). Following of European colonists jostled for influence to the establishment of the People’s Republic of set up concessions to trade with an emerging China in 1949, Wuxi continued to develop with China. The resulting match of these cultures great aplomb into textile production and heavy ignited the region’s innate entrepreneurial zeal. industry although not without some growing Extensive commercial activity quickly followed, pains caused by such rapid expansion. interrupted but not extinguished by world war Today Wuxi is one of China’s top business and revolution, while accelerating in the last districts and has been designated an investment two decades as Shanghai has become one of the grade city, comprising two enormous, new fastest developing cities in the world. industrial areas in addition to the traditionally The city is also home to the world’s busiest evolved criss-cross of roads and canals that container port, which processed more than 29 congregate towards the historic city centre.

6 This is dominated by contemporary skyscrapers, Symbolising both the prosperity of the city and through the city of Wuxi, the Grand Canal of while the old market, canal-side buildings, its rich natural surroundings, the Wu custom China negotiates all of the east-west river alleys and bridges straddling these old celebrates holistic material, spiritual and systems. The numerous historical gardens, backwaters are being renovated. Conversions cultural creation. established by notable figures of the past, have also make good homes for trendy boutiques and Built close to the misty shores of Lake Tai, also been well preserved - enhancing the area’s a popular restaurant scene with a thriving arts Wuxi boasts both natural splendours and man- antique charm. community. This is also a popular quarter in made attractions and proves a major tourist which to play badminton at weekends. draw to the lower Yangtze Delta, welcoming In the zone thousands of visitors every year to this Wuxi’s economic development zone was first Cultural charm evocative fresh water lake. Rising up from the established in 1992 and is one of the country’s In addition to its brisk trade and thriving lake is the limestone bluff of Longshan Mountain main industrial parks. A well-developed business, Wuxi is also recognised for its which provides a spectacular verdant setting transportation system makes the area contribution to Chinese culture. Although for the Lingshan Grand Buddha. Standing 289ft particularly accessible for both domestic and adhering to traditional Chinese values, the high, the Buddha is the world’s ninth largest international markets, while qualified suppliers ‘Wu’ area is also influenced by modernisation statue and, with its temples, water fountains, and a strong work force are an additional and embodies unique provincial characteristics steep paths and formally laid out grounds, benefit. which can be easily identified in the provides a huge source of both local and More than 1,200 enterprises are registered architecture, distinctive dialect and waterway international visitor interest. within Wuxi New District (WND) - representing way of life. Wuxi has produced many eminent Chinese the area’s five main industries: electronic According to academic research into this authors while the area is also famed for its Xiju information; precision machining and mechanical period, the ascendance of King Wu, first opera and handicraft specialities, such as the and electrical integration; bio-pharmaceuticals; ruler of the Zhou Dynasty, in 1046 saw the production of Huishan clay figurines. Other fine chemicals and new materials. Besides the establishment of the Wu state. During this era, notable figures from the region include Hua manufacturing industry, the software and out- the cultures of central and southern China were Hengfang, a 19th century mathematician who sourcing industries have been expanding at a uniquely blended to form the Wu culture, with aptly made significant contributions to science rapid rate. Also located within WND, the Wuxi what came to be Wuxi at its core. Since then, and technology. export zone encourages the development of the Wu has played an important part in ancient The prefecture is famed for its network of electronic information and optical-mechanical- Chinese tradition and is still widespread today. interweaving inland waterways and, sweeping electronic-integration industries.

7 8 Standing from left: Bai (Purchasing Manager) Sun Jian (HR & Administration Manager) Sitting from left: William Chan (QA Manager) Mary Zhuang (Customer Service Manager) Liu Jiang (Inventory Supervisor) Daniel Tan (MD Asia Pacific) Huang Haitao (Production Manager) Zhang XN (Project Manager) Paul Zhang (Operations GM) Xue Changfu (Director)

Hunting Wuxi Custom plant Based in the commercial heart of the Wuxi The facility itself is arranged with two buildings, was already built by the time the site was economic development zone, Hunting’s new prosaically named plants A and B. The latter acquired and temporarily housed the CNC facility is already operating at full strength. provides extensive offices to house the threading machines while the new Plant B was Measuring an impressive 280,000sq ft, it is administrative functions, while materials and being built. It now provides covered storage and built to handle a throughput design capacity inventory can be moved between buildings by a regional centre of excellence for couplings, of 120,000 tons of OCTG per annum. The steel rail and overhead crane that spans the capable of producing up to 100,000 sets facility serves the fast-growing domestic and storage yard. This is a much more efficient and annually. This gives economies of scale to the regional Asia Pacific market with a high quality safer alternative to forklift movements. Plant A rest of the Hunting Energy Asia Pacific region, premium product. This is an important step especially where land prices at other facilities in consolidating and developing the regional are at a premium. Plant B provides a brand new position for Hunting’s proprietary technology state of the art operation, with custom built pipe including the Seal-Lock range of products. Canal works handling systems and a factory layout planned on lean principles. Four production lines are Doing business Stretching 1,776km, China’s Grand Canal is understood to be the longest in the world configured for single piece flow; one line is The location lends itself to a variety of logistical and its oldest section dates back seven dedicated to threading high percentage chrome options with a well-planned network of express material. High value casing and tubing are centuries. The earliest excavation, which 3 highways and high speed trains. The local took place in southern Jiangsu, came processed from 2 /8 in to 20in diameter. airport also helps to keep the city moving, about as a consequence of China’s core The office accommodation is designed for offering domestic passenger destinations and economic and agricultural region migrating good communication flow and to facilitate providing access to the international airfreight from the Yellow River valley in the north, the integrated management team comprising system. A bustling trade is sustained by the toward the southern provinces. Throughout Finance, Human Resources (with Health city’s thriving barge market which transports history the canal’s primary role has been & Safety) and Quality Assurance. It also bulk cargoes between interior and coastal the transportation of grain to the capital, provides an attractive working environment ports. Close proximity to the leading Chinese Beijing - although its institution also for engineering, commercial and operational steel mills helps keep lead and turnaround allowed food supplies to be easily shipped functions. Continuous training is an integral times to a minimum and provides a competitive to army personnel posted at the northern part of the evolving business and in spite of the source of supply for the customer. Hunting Wuxi frontier. The economic importance of the work ethic, the facility still manages to field can therefore supply all the major domestic canal is likely to increase in the future soccer and basketball teams in a local league. national giants as well as the international following a recent dredging operation. A well balanced team of highly respected operating companies and major service Expected to reach completion this year, local partners and Hunting staff has quickly suppliers. the Jiangsu government anticipates that merged into a single, strong operating unit. the exercise will encourage a 40 per cent While mindful of the area’s rich industrial increase in overall shipping capacity. heritage, the team is also aware of the opportunity this creates with the other company facilities throughout the Asia Pacific region.

9 Charged with potential

unting announced its $775m acquisition, during its first 40 years of entrepreneurship its biggest ever, of Titan Specialities, until 2006 when it was bought out by a private Hthe US leader in ‘Perforating Guns’ equity concern. In those intervening five and associated hardware in August last year. years the company has grown from having These tools are used to carry packages of seven distribution centres in 2006 to owning shaped charges to predetermined points in the 20 today. It employs some 500 staff at five wellbore. There they are phased to detonate manufacturing locations including the main in a pre-set sequence and pattern to perforate ones at Pampa and Milford in Texas. The the well casing, sending jets of molten metal change in emphasis really helped to light the into the rock formation to leave short pathways candle beneath some nascent initiatives that into which the oil or gas can flow back into had remained untested until the company the wellbore. This then makes its way up to took on the professional mantle provided by the surface at a steady and controlled flow the Houston office. It is notable that in spite rate. While sharing the same history, these of the intense disruption caused by the recent are considerably more sophisticated than acquisition process, successfully delivered to the ‘Down Hole Bombs’ or ‘Bazookas’ first Hunting, the sale concluded with no let up in conceived of during the early 20th century. operations. Titan’s product portfolio is expected to further Hunting Titan’s first team mantra is to aim COO Rick Bradley strengthen Hunting’s market share in the for competitive pricing but with a high service technologies used for the extraction of gas offering to differentiate itself from competitors. from shale and developing opportunities in the The company has worked hard to reposition shale oil sector since it is particularly suited itself as the US perforating industry leader. to horizontal drilling. The newly rebranded This has been helped in no small measure by Hunting’s acquisition Hunting Titan is also predicted to make the the changes that have been wrought and the most of Hunting’s global footprint and has systems rolled out to bolster the marketing, of Titan Specialties is ambitions for international product expansion. financial and human resource functions, including the establishment of Titan University. designed to dovetail Perfect positioning Headquartered in Houston, just a stone’s throw Pampa - product power house respective ambitions from the North American offices of Hunting Located some 600 miles north of Houston, an Energy Services at Northpoint, the business hour or so west of Amarillo is the company’s to develop a worldwide is led by Ken Babcock, working closely with 208,000sq ft Pampa facility where perforating a tightly knit team of dedicated professional guns are made. The workshops house a presence in an expanded colleagues. The company has its origins succession of CNC turning, milling and further north in the Texas Panhandle where precision laser cutting centres, as various range of leading energy the manufacturing sites still primarily reside. parts of the ’gun’ are machined and assembled. Started as the personal vision of founder Bill Being deployed down the wellbore it is no products Berry, the business had been steadily built up surprise that the guns conform to a tubular

10 shape. The outer bodies or ‘carriers’ are sawn to desired length and steel walls scalloped into weak points whose pattern reflects the shot density and blast phasing that will take place in the oil or gas formation. Each scallop will line up exactly with each shaped charge that will be placed later in the charge tube. These are then marked, aligned and slotted into place inside the carrier. No explosives are fitted into the tool until it is ready for use in the field, so at this point there are no handling protocols to impact on working practice. End plates are then fitted to fix the assembled parts in place, stringent QA traceability maintained and the perforating gun then labelled ready for shipping. From the original mechanical offering, a range of sophistications have been developed to match the need of today’s more unorthodox geological formations. The product range has also been enhanced to offer much more in the way of electronic integration such as firing switch gear. Instrumentation of a MWD/LWD nature is also a fast growing segment that extends to wireline telemetry tools as well as highly integrated detection and logging systems. In support of its manufacturing and to ensure component integrity the company has built a state of the art dry room for the scintillation of crystal manufacturing. The capability extends to manufacturing devices designed for automated environmental test equipment that monitors heat, pressure and vibration of down hole tools as well as multiple temperature chambers, pressure vessels and neutron calibration pits. The company even boasts an indoor 1,500ft test well. Suffice to say that product quality and testing are taken very seriously indeed -

11 in fact the company became ISO-9001 accredited in less than a year, once it was determined the qualification was needed. Pampa family Hunting Titan’s Chief Operating Officer, Rick Bradley, is the exception to the executive team in that he is a long standing resident of Pampa and a company stalwart of 32 year’s service; his dedication to mechanical design Assessing the engineering, technical experience and business pathway of the leadership skills are legion. Indeed he could shaped charge be described as one of the original pillars of blast during one the business created by Bill Berry and one of of the destructive its many success stories. Titan was formed spot tests during the late 1960s from the ruins of a defunct wireline company when major energy service providers were starting to outsource their manufacturing divisions. The company sought to plug this gap for manufacturing for the majors but also to provide a source of high quality product for the smaller independent service companies which would not otherwise survive. The strategy stood the test of time and Titan can be credited with enabling the thriving independent sector of today. In growing the company, skills gaps were plugged by adding the appropriate expertise as and where necessity demanded, such as bringing in an explosives, or ‘energetics’ engineer to start to develop whole perforating gun systems instead of just parts. The majority of the work is completed in-house with the research and development department creating innovative products for customers that require equipment to be custom-manufactured to exact specifications. A prototype machine shop is dedicated to rapidly producing these unique orders. Milford sounds At the Milford facility, around 50 miles out of Dallas, Girven Kissell, General Manager of Energetics, oversees the manufacturing of the

12 shaped charges and setting tools. The tubing conveyed perforating (TCP) products, destined for use in perforating gun systems are managed by Joe Hanke. The shaped charge production area covers 87,000sq ft while a 9,500sq ft building is used for the TCP line. Seven years ago the manufacturing facility spread over 20 acres; today in a new, purpose built facility it covers 500 acres. Dealing with explosive materials requires strict adherence to regulations governing the layout and distance between buildings on the site. All buildings are built to military magazine standards and also double up as tornado shelters - a necessary precaution in this part of the world. It is important that industry standards are constantly monitored and civil use for commercial explosives interests are not unheeded which demands that the company maintains the highest global standards. The workforce is highly skilled and requires a level of dexterity which leads to a large proportion of women on the team. Each product line has been set up to allow for cellular style manufacturing where a number of processes are undertaken to break the monotony of a single flow line. It also means that there is less movement needed between work stations and the work is more interesting Girven Kissell, GM of Energetics (left) and Hilary LaManna, HR Director, for staff. The plant mass produces millions of Mike Meadows, Director Special Projects Ken Babcock, CEO, and Roger Rivet, CFO shaped charges each year making the company a significant player in both the domestic North American market and in global terms. Not to assuage the menfolk, but to maintain rigorous which can be supported by Hunting’s global quality standards, one in every 250 charges is footprint. Many synergies exist, particularly destructive tested on site. for promoting Titan’s wireline accessories to overseas markets. The company has garnered International lure a fine reputation for supporting many of the Not only can Hunting Titan’s distribution independent operators in the USA’s shale points, strategically placed in the major plays and hopes to replicate this appeal to hydrocarbon basins all over North America, independents working on the international including Canada, be used to distribute other stage, initially in the Middle East and North products from Hunting’s extensive portfolio African region but extending rapidly to the Far but the company has international aspirations East and beyond.

13 Let the Games begin

14 International attention is on London as it gets ready to stage this year’s Olympic Games. The city’s approach will combine both its unique history and stadium innovation

rawing on the country’s Olympic Architects have also retained London’s tradition heritage, London has brought an of building homes around communal squares Dinnovative approach to staging the - a lasting legacy which, after the Games, 2012 Games. Preparations have been in full will be transformed into 2,800 new homes for swing since the city’s bid was selected by the developing communities. International Olympic Games Committee (IOC) With a capacity for 80,000 spectators, the in July 2005. Olympic Stadium is considered to be the most Under the watchful eye of the Government sustainable sporting structure ever built. Steel Olympics Executive, which is co-located at resource was in short supply so the build used 3 Cockspur St with Hunting’s HQ, the Olympics 75 per cent less of it than for comparable Delivery Authority (ODA) and LOCOG, the structures and also features a low-carbon London 2012 Organisation Committee had the concrete, made from industrial waste. Situated task of constructing all the new main venues on an ‘island’ to the south of the Olympic Park, Velodrome and infrastructure for the London 2012 Games. the stadium is surrounded by waterways and is These are now complete. accessible via five bridges that link the venue Most of the key events will take place in East to the surrounding area. London’s newly regenerated Olympic site. In the the series will also provide a chance for run up to the event, the ODA set out a series of On your marks... international athletes, who have yet to qualify, milestones, clearly charting the different phases Construction of the Aquatics Centre began to compete for selection in their respective of the lengthy construction project. A challenge in 2008 under the direction of acclaimed Olympic team. of Olympic proportions has seen the formerly international architect Zaha Hadid, cousin British hopefuls such as the 2008 Beijing unused, contaminated space developed into to Cynthia, a long serving member of staff, Olympic medalist Louis Smith and double a spectacular urban park with world-class although now retired, at Hunting PLC. Olympian Beth Tweddle will compete in the venues and new infrastructure links. Archaeological investigations on the site of the London Prepares International Gymnastics Extensive investment has totally transformed Aquatics Centre uncovered evidence of an Iron event, while the FINA Diving World Cup, held the area, from what was once a bombed out Age settlement - including an ancient burial site February 20-26 at the newly built Aquatics industrial wasteland into a contemporary with four skeletons. The modern venue features Centre, will be the last opportunity for athletes architectural masterpiece. Sparking spectators’ an inventively designed ‘wave’ roof, 160m long to qualify in both individual and synchronised imaginations and inspiring athletes around and 80m wide, while a vast bridge which runs diving categories. the world, international attention has been over the top will provide the gateway for up to captured by the 250 sprawling acres of green two-thirds of visitors to the Olympic Park. After Relight the fire space which now enclose the ultramodern the Games, the centre will become a facility for Igniting hope in the heart of proud nations, the Olympic Stadium and innovatively designed the local community, clubs and schools, as well Olympic Torch plays an intrinsic part in the Athletes’ Village. as elite swimmers. Games. The flame finds its origins in ancient Located within walking distance of the Featuring 39 sporting disciplines including Greek history, introduced into the early Games venues, the Olympic and Paralympic Village athletics, badminton, modern pentathlon and as a symbol of fire stolen from the god Zeus. has been designed to enhance the experience taekwondo, the London Olympics promise a According to legend, the flame has never been of the event’s key participants - the athletes celebration of sport and culture, of volunteers extinguished and follows the same precise ritual and officials. Comprising 17,000 residential and business. Indeed, from security firms to every four years. Reviving its role in the run up apartments, the Village provides access to construction companies, 1,500 UK businesses to the 2012 Olympics, the flame will feature in shops, restaurants and leisure facilities. have won around £5bn worth of Games- a traditional ceremony at the Temple of Hera related contracts. However, the Games will in Olympia and take a short passage through also leave a lasting national legacy. The area Greece, before it is delivered to Britain on May has been economically transformed, with 18 to continue its journey. thousands of future new jobs planned for the Earlier last year, the British public was Park alone. Further benefits for the wider encouraged to nominate inspirational community include cross-city transport into individuals to take part in the 2012 torch relay London - extending employment and tourism and the 8,000 successful Torchbearers have opportunities. had their places confirmed. Starting at the southernmost tip of the UK on May 19, the London prepares ancient emblem will weave its way through the Final arrangements for the 2012 event rely streets of 1,000 UK cities, towns and villages. on a comprehensive testing programme, Transferred from one Torchbearer to the next, dubbed ‘London Prepares’, a series of 42 the flame will generate global excitement as competitions set up to assess vital areas of it is carried over 8,000 miles for 70 days. The Aquatics centre LOCOG’s operations. Held in early January, epic journey will end in spectacular style on these preliminary events will focus on testing July 27 as the last bearer lights the cauldron at essential aspects such as the field of play, the Olympics’ Opening Ceremony, marking the scoring and timing systems. In some cases official start of the Games.

15 The Maine The second of Hunting’s acquisitions last year opens up possibilities for attraction growth in the MWD/LWD sector

earborn Precision Tubular Products Inc., parts including control rods for shipboard in the US State of Maine, was acquired in nuclear reactors. Super accuracy in ‘deep-hole DAugust 2011 to form Hunting Dearborn. drilling’ had formed the basis of the company’s At this site the company manufactures high reputation and Dearborn continued to develop precision tubular and rotating metal components on that speciality in Fryeburg. for customers that require products with In 1975 the founder brought Tom Shaffner, his exacting tolerances and unique configurations. former patent attorney, to Fryeburg to help him The components are used primarily for MWD/ run the business. For the next two years Howard LWD applications in the oil and gas sector. and Tom worked with GE Nuclear, positioning the company for substantial production of A little history control rod drive tubes for its commercial The founder, Howard Dearborn, moved from reactors. That business set the stage for growth Cleveland Ohio in the mid 1960s to the historic and more hiring. In 1977 Bill Findeisen met the town of Fryeburg. He had been attracted founder through a mutual interest in aviation originally as a visitor to the natural grandeur of and after a somewhat idiosyncratic interview the Saco River and stunning White Mountains Bill was hired as a trainee. region. The business had started off making A ramp up in production followed a growth aero engine piston blanks and gradually in orders from GE Nuclear and soon this formed became known for drilling high end tubular the bed-rock of business, which was to continue through the late 1970s. The first building created for this purpose is just across the driveway from the bulk of the present premises that have continued to be developed as the company has grown. Meanwhile, back in the early 1980s, the initial growth trajectory was abruptly stalled by the 3-Mile Island accident which led to a government-imposed moratorium on nuclear projects. It became a logical imperative to seek similar engineering work in a competing energy industry to survive - that chosen being the oil business. Into the oil patch The Texas centred oil and gas industry had built manufacturing expertise for drill collars around standard grades of alloy steel. With the commercialisation of measuring while drilling technology the demand boomed for 30ft long non magnetic survey collars. Not only were the new alloys difficult to machine, the customer expected greater control of the wall thickness. Precision drilling of exotic alloys for drill collars and other oilfield parts proved to be the next great market for the company. In 1986 there was a sale of some of the business assets to a major specialty steel company. The company was restructured with management holding equity and Bill Findeisen was appointed General Manager. It was not a great time for most manufacturing businesses but perseverance paid off with regular sales calls to Sperry Sun in Texas and Teleco in Connecticut. Sperry Sun

16 •Dearborn employs some 250 people; the total Fryeburg population was a little over 3,000 at the last census •46 years of commitment to the town of Fryeburg, whose colonial history spans more than 246 years •140,000sq ft of climate controlled premises, including areas under construction •Fitness programme boasting wellness centre and recreational facilities on an 80 acre site; bring snow shoes in winter •SHARP - ‘Exemplary status’ for Occupational Safety and Health accreditation by the State of Maine •Deep-hole drilling, trepanning with multiple off-centre, angled and bottle shaped bores: 650 manufacturing hours can be invested in just one piece

(now Halliburton) and Teleco (the first to bring MWD commercial) became good customers. Dearborn was able to bring precision drilling skills, a well developed quality system and reliable quality to the market. The customers wanted more, they wanted turnkey drilled, turned, threaded, milled, shotpeened, finished parts. This was the start of where Hunting Dearborn is today. As the company invested in CNC equipment to produce finished parts for customers Bill, Tom, longtime Engineering Manager John Berg and many others in the company worked to position the company as a leader in quality and service with a reputation for doing the difficult jobs well. Power and flight Meanwhile a start was also made in developing as an aircraft engine component manufacturer for GE. The buyer, with whom Bill had the established relationship at GE Nuclear, had moved up to Cincinnati and fortuitously was able to introduce him to the right colleague for aviation engineering. So began a longstanding relationship, developed in the mid 1980s and enduring since - with much of the product being sole source. Other aerospace work ensued for a number of OEM’s including United Technologies. A successful related diversification into power generation has seen the building of equally long- term business bonds. Corporate development As 1986 saw the beginnings of a redefinition of the business beyond the founding family - the process continued with another ownership transition in 1994 when Tom Shaffner and Bill Findeisen became the majority shareholders.

17 The professional team has been continually because there are none close by. For similar strengthened since then. In 2009 Frank reasons the company tries to hire people who Lawrence Jr graduated to Sales Manager, have an empathy and reason to be in Fryeburg from specialising in just oil and gas sales. Also other than just their job. In 1991 there were 50 in 2009 Rob Newton, Staff Accountant since employees with many still remaining on board 1998 was promoted to CFO. John Berg with 40 today; the workforce now numbers 245 in total, years of experience is currently transferring his performing some 3,000 different processes. knowledge and responsibilities to John Santerelli Typically there are 8-10 people doing ‘on the job and his team of manufacturing engineers. Other training’ to deal with attrition, retirements and long term employees filling key roles are Dave so forth. Not all trainees work out but that some Pasquale - Operations Manager, Brad Gould - will not, is as inevitable as it is rare. Everyone QA Manager, Justin Bartlett - QC Manager, Jerry - that is everyone - takes a basic aptitude Knapp - Aerospace Sales, and Andy March - test before consideration for employment - Aerospace Manufacturing. benchmarks set over the years suggest someone with a mechanical bent and high degree of Location and people accuracy are those best suited to work here. There is an advantage in being positioned in Interest is the most powerful indicator - not a rural location for retaining employees, but a horsepower or dexterity. Training can add much disadvantage for finding new people with the to the skill set but cannot change the basic mind right skills. However a well-established and set. positive work ethic and strong potential in raw Some recruitment is done with trade material is happily available. The company is the schools - primarily in upstate New Hampshire largest employer in Fryeburg by some margin and Maine - all are close but not on the door and easily so in the private sector. The location, step. In the past the company has sponsored while arguably remote, encourages a loyalty youngsters through college and these for employees to stay with the company and applicants are often recommended by relatives discourages technology transfer to competitors of employees; the view is taken that no-one is

18 going to recommend someone who is unlikely to future and customers’ R&D looks set to remain measure up. with the corporate parent with their desire to keep IP close to their chests. However this Not just the tools means there will always be a requirement for a Commitment to building its own tooling and stable inventory of parts which will be difficult equipment leads to the employment of full time to offshore in order to service this particular tool designers, a small team of machine makers work stream, whatever the industry cycle. and an engineering section for rebuilds and upgrades. In other organisations this might Community be seen as an overhead, but here it means With a relatively large presence in the district, that the materials, intellectual property and community involvement has traditionally been process technologies stay in-house and are not embedded in a culture of good citizenship distributed. On occasion the company has tried that goes beyond the corporate and embraces to hire in programmers for CNC modifications but individuals. This has not lent itself to a high the high specification of exotic materials used profile while a history of generous and serious tends to frighten them off - some of the front end long-term support in money and people’s time costs for the materials deployed in the oil and has been equally low key. Awards are made gas sector are very expensive. The margin that and are typically local: the rescue squad, fire material earns is great, provided it is worked department and local school district all benefit. correctly, but the risk of failure has an equally Voluntary service and support to the academic high value that would be ruinously costly. sector have been special features with the Concurrent engineering is typically achieved company and individuals, just being good in association with the customer since there neighbours, figuring how to help out rather is constant development of tools with each set than seeking public profile or simple hands off From left: Bill Findeisen, Frank Lawrence Jr, of engineers keen to build a new and proven donations. John Berg and Rob Newton fleet of MWD/LWD products. New product development is very much the flavour of the

19 Unconventional oil and gas exploration is spreading beyond the USA where it has transformed the country’s energy markets. Is it now a game changer for other nations? Challenging convention

Drilling Fracking

Technically recoverable shale gas resources (from US Energy Information Administration)

merica’s shale oil and gas boom continues in the Netherlands, Germany, Sweden, Australia expected to follow suit. Again, a apace. Indeed this unconventional energy Hungary, Switzerland and Spain. Theoretically bumpier ride is expected in Australia than the Asource has been credited with producing European recoverable shale gas reserves could USA has experienced. In addition to dealing with something of an industrial renaissance in those cover European gas demand for another 60 the technological challenges and public concerns economically depressed parts of the USA which years - although significant development of for drilling, labour costs are higher than in have discovered financially viable reserves. The unconventional gas resources in Europe is not America and the continent’s vast distances and shale phenomenon is attractive to landowners, expected to have a major impact before 2020. infrastructure challenges, point towards slower who receive good prices for leasing drilling The picture in Eastern Europe also looks progress. rights on their land, and has gained significant positive. Chevron is exploring shale gas potential The world’s fourth largest holder of shale investment from major oil operators in terms of in Romania and Bulgaria, while Poland has gas, Mexico, also faces infrastructure issues in building property holdings with drilling rights. Of been a prime mover in European shale gas producing its shale gas. Analysts estimate that course work with the operating companies has exploration; the country is estimated to have unlocking this Mexican treasure trove could cost helped to increase employment thus stimulating 187Tcf (US EIA) of recoverable gas. Some of up to $80bn. Thousands of wells would need the economy around the drilling locations. Since the most promising European shale plays are to be drilled in remote areas which have little 2003 it is reckoned that one in five new jobs in offshore in the North Sea although these have or no existing infrastructure to transport gas all of the USA is directly associated with this yet to be commercially proven - an occurrence from wellhead to market. Added to this Mexico energy sector. that analysts believe is more down to economic has a relatively low rate of gas consumption - One of the largest discoveries in recent viability rather than any technology challenges. some areas of the country are not yet linked to years has been the Bakken Shale, located in However the path to shale gas is not running a national gas distribution grid. The country’s the Williston Basin Formation, covering parts of smoothly across all of Europe. After announcing location right next to America is ironically North Dakota, Montana and Canada. The Bakken a significant UK shale gas discovery in 2011 another disincentive as it can theoretically play is estimated to contain between 3-5bn - enough to meet UK gas demand for 64 years import low-cost gas, which is already being barrels of recoverable oil as well as just under - the brakes have been temporarily applied to produced on a grand scale from existing 2Tcf of natural gas (BakkenShale.net). further exploration while environmental concerns infrastructure. The country is now in the enviable position of are addressed. This appears to be an issue The picture in South America is similar. having around 100 years of natural gas supply over the lack of a body of scientific research Argentina, which has an estimated 774Tcf (US on its own doorstep. Unlike other world markets, rather than assessment of potentially damaging EIA) of shale gas reserves, currently lacks the increased supply has been a consumer’s dream, techniques. Compared with the USA, European financial incentive for developing new sources driving US gas prices to historical lows. Indeed unconventional gas resources are located of energy as both oil and gas prices are strictly such is the turnaround of America’s natural substantially deeper - beneath groundwater regulated and kept artificially low. As global gas strategy that it is now developing its first levels; this raises exploration costs but lowers competition and liquefied gas transportation is liquefaction plan to enable gas to be exported. groundwater containment risk which may go developed through international spot markets, But is this set to remain a uniquely American some way to mitigating environmental concerns. this is sure to change. experience or is there potential for energy Certainly tight regulation and safety measures markets around the world? are likely to be demanded and given by the Shale gas dragon? industry. The country sitting on top of some of the largest European perspective deposits of shale gas - China - also faces its own Advocates of shale gas believe European Southern hemisphere views challenges to make its shale gas dream come production could help break Europe’s Meanwhile the US Energy Information Agency true. Developing deposits in areas such as the dependence on gas imports from Russia and (EIA) believes that Australia is sitting on the Sichuan Basin is still in its early days - but it is the Middle East as supply gradually eases from fifth largest reserve of shale gas. Cooper Basin certainly high on the agenda as the market for the established North Sea fields. Concessions on the South Australian/Queensland border is a cleaner source of fuel for power generation for shale gas test drilling have been granted leading the way with Canning Basin in Western becomes a priority. It’s certainly not going to be

20 Estimated shale gas technically recoverable resources for select basins in 32 countries, compared to existing reported reserves, production and consumption during 2009

2009 Natural Gas Market(1) (trillion cubic feet, dry basis) Technically Recoverable Proved Natural Shale Gas Gas Reserves(2) Resources Imports (trillion (trillion Production Consumption (Exports) cubic feet) cubic feet) Europe France 0.03 1.73 98% 0.2 180 Germany 0.51 3.27 84% 6.2 8 Netherlands 2.79 1.72 (62%) 49.0 17 Norway 3.65 0.16 (2,156%) 72.0 83 UK 2.09 3.11 33% 9.0 20 Denmark 0.30 0.16 (91%) 2.1 23 Sweden - 0.04 100% 41 Poland 0.21 0.58 64% 5.8 187 Turkey 0.03 1.24 98% 0.2 15 Ukraine 0.72 1.56 54% 39.0 42 Lithuania - 0.10 100% 4 Others(3) 0.48 0.95 50% 2.71 19

North America United States(4) 20.6 22.8 10% 272.5 862 Canada 5.63 3.01 (87% 62.0 383 a case of simply replicating America’s success. Mexico 1.77 2.15 18% 12.0 681 A number of factors are in play here: the densely populated areas and competing demand for natural resources are going to make development Asia planning a crucial hurdle to be overcome China 2.93 3.08 5% 107.0 1,275 along with the complex geology. It’s a tricky India 1.43 1.87 24% 37.9 63 conundrum because freeing up home-grown Pakistan 1.36 1.36 - 29.7 51 shale resources would reduce China’s reliance on coal, which currently accounts for 70 per cent Australia 1.67 1.09 (52%) 110.0 396 of its electricity needs (ScientificAmerican.com). It would also ease its imports requirements and provide energy security in the event of Russia Africa and other neighbours restricting gas supply. South Africa 0.07 0.19 63% - 485 Lack of experience in drilling horizontal wells Libya 0.56 0.2 (165%) 54.7 290 forms another technical hurdle but with the Tunisia 0.13 0.17 26% 2.3 18 assistance of the International Oil Companies, Algeria 2.88 1.02 (183%) 159.0 231 which have already been signed to develop these Morocco 0.00 0.02 90% 0.1 11 resources, a pathway can be visualised. While Western Sahara - - - 7 US landowners have mineral rights, in China, Mauritania - - 1.0 0 as in many other countries, the government owns the mineral rights which can be a two edged instrument, both speeding and delaying South America contract awards through the central and regional Venezuela 0.65 0.71 9% 178.9 11 administrations. Royal Dutch Shell has signed a Colombia 0.37 0.31 (21%) 4.0 19 partnership agreement to help PetroChina build Argentina 1.46 1.52 4% 13.4 774 wells and Exxon is partnering with Sinopec to Brazil 0.36 0.66 45% 12.9 226 explore the Sichuan Basin - but these are still Chile 0.05 0.10 52% 3.5 64 early days and analysts point out that developing Uruguay - 0.00 100% 21 these areas will not happen overnight. America looks likely to remain several steps Paraguay - - 62 ahead of the rest of the world over the next few Bolivia 0.45 0.10 (346%) 26.5 48 years in terms of the speed and capacity of its shale gas extraction. It is helped in no small Total of above areas 53.1 55.0 (3%) 1,274 6,622 measure by the pioneering efforts of energy Total world 106.5 106.7 0% 6,609 industry players over the last 20 years to develop the processes and technologies to make Sources. it economically viable. Others may follow but 1‘Dry production and consumption: EIA, International Energy Statistics, as of March 8, 2011. they have a long way to catch up and respective 2 Proved gas reserves: Oil and Gas Journal, Dec., 6, 2010, P. 46-49. geopolitical and local obstacles will not make 3 Romania, Hungary, Bulgaria. replication easy. Economics suggests however, 4 U.S. data are from various EIA sources. that these barriers will in time be addressed as a cheaper, cleaner source of fuel becomes an imperative.

21 Pradeep Meattinkara getting Take it to grips with ‘Godzilla’ to the limit

s a market leader in specialist thru-tubing Accepting the proposed solutions, the tools, Hunting Welltonic was recently Hunting Welltonic AJ Lucas Drilling engineers were happy to faced with a unique and unusual request commission six sizes of drilling disconnect A 3 3 for a suite of Large-Bore Latch Disconnects to achieves a major step and burst disc tools from 3 /4 in - 6 /4 in be used in a Coal Bed Methane (CBM) prospect OD. Hunting also ensured that sufficient in Queensland, Australia. Typically it is not change in well inter- redress kits and spares were also provided. cost-effective to spend more than a couple of In addition Chrome Stainless Steel Drop Balls days of valuable rig time working on a jammed vention fish tool design were included from 2 3/8 in to 3 3/8 in OD, as pipe, so Hunting’s task was to come up with a well as appropriate hybrid rupture discs of suite of job specific tools - hydraulic disconnects for a Coal Bed Methane various pressure ratings. The whole project or release subs - to assist in the event of any was completed in just six weeks - from receipt Bottom Hole Assemblies (BHA), drill string or operation in Australia of the purchase order by Hunting Welltonic directional drilling equipment becoming ‘stuck’ Asia, through engineering specification down-hole. This is especially desirable in remote however, AJ Lucas’s need had to be up to 5.00in fixed in Aberdeen, to sourcing the material, locations where the chance of finding a timely which meant engineering, manufacturing and manufacture, assembly and testing in Dubai, solution to a problem, once it has occurred, is testing a completely different beast. Technical ready for shipping. unlikely. data and associated tool requirements were The brief from customer, AJ Lucas’s Drilling handed over to the in-house engineering team Services, was to provide large OD Hydraulic in Aberdeen; factors included high torsional Going large Release Disconnects compatible with the and tensional strength, a range of optional low One of the challenges facing the workshop operation’s existing range of drill-pipe together pressure shear ratings for the shear pins and staff in Dubai was the fact these sizes of latch with its range of specified connections. the inclusion of a rupture burst disc assembly. disconnects had never been manufactured Although these large-sized disconnects are before let alone ‘man handled’ in the workshop. Equipment selection bespoke and not held in the company’s rental Their assembly and testing required different The thru-tubing tool selected was the Large- fleet, the engineering group was able to supply techniques and in some cases the rental or Bore Latch Disconnect. This is a torque driven the appropriate drawings in less than a week. manufacture of specialised tools to ensure the disconnect that is released via a drop-ball and The outcome of this was a new selection of project came together. This order was probably hydraulic pressure differential mechanism. The Large-Bore Latch Disconnects at 3 3/4 in, the most different, if not challenging in many tool enables the operator to ‘drop a ball’ and 4 3/4 in and 6 3/4 in OD. As a comparison, the ways, that Hunting Welltonic’s sales, engineering 1 pressure up the tubing in order to disengage conventional 3 /8 in OD disconnect comes in and workshop personnel have recently from a stuck fish or, in the case of AJ Lucas, a at 21.47in - 1.75ft shoulder to shoulder, while undertaken. The bonus is that it has clearly trapped down-hole BHA. The tool can handle the 6 3/4 in OD Large-Bore Latch Disconnect demonstrated that with the right preparation both straight pull and torque loads without measured a whopping 53.00in - 4.41ft and and planning, and the ability of Hunting affecting the release device. weighed 280kgs (620lbs); the stainless steel personnel to react to the customer’s needs it Previous sizes for this sort of disconnect tool drop-ball for this ‘Godzilla’ was itself a massive was possible to achieve and deliver the desired 3 had been well proven in 2 7/8 in to 31/8 in OD, 3 /8 in OD. result - all to the customer’s satisfaction.

22 Lean and clean A lean project team at Hunting’s Sam Houston Parkway facility successfully tackled a troubling coolant issue

unting’s Sam Houston Parkway facility houses more than 30 CNC manufacturing Hcentres producing everything from components used in MWD/LWD to precision engineered OCTG accessories. All this machinery requires hundreds of gallons of machine coolant each year to keep it ticking over efficiently. To sustain the company’s high reliability manufacturing processes means keeping coolant levels at the optimum - and this had necessitated replacing coolant in each machine on a monthly basis at a total annual cost of $60,000. In addition to the significant sums spent on coolant, the facility was dogged by a smoke problem which occasionally permeated it. Produced as the coolant is activated, the smoke is a typical side effect of the manufacturing process and is often found on similar industrialised sites. But when several of the machine operators also complained about skin irritation and a pungent odour seeping from the equipment - a typical sign of bacteria build up in the coolant - it became clear that rapid action needed to be taken. A lean project team consisting of site Maintenance Manager Ron Tuttle and Equipment Specialist Dale Mollenkamp got straight to work, under the guidance of Hunting’s lean manufacturing champion Ken Oberholz. Director of Manufacturing Technology, Ken is charged with identifying and implementing lean opportunities across the Hunting stable of manufacturing businesses. While this project was small scale in terms of financial savings, it was an excellent example of how lean can make a dramatic difference to employees’ health and surroundings as well as reducing waste. Pursuing the lean dream With clear economic and organisational benefits, Hunting is instilling a culture of lean manufacturing across its entire global Dale Mollenkamp (left) and Ron Tuttle portfolio and continues to implement measures accordingly. Ron and Dale swiftly devised a scheme to cut costs on the machine coolant, combat the contamination and clear the could then be separated out and stored either implementation, the facility has reduced the cost offensive odour. for disposal or recycling. of its coolant consumption by a dramatic 97 per A refractometer, used to decipher the The facility’s maintenance department has cent. In addition, the site is now able to recycle machines’ coolant levels, quickly confirmed now been tasked with measuring each machine and sell the separated oil at a commercial that the concentration of the fluid being on a regular basis to ensure that the critical 4:6 rate. Another bonus from the increased use of deployed was two and a half times in excess of refraction ratio is adhered to. This allows the recycling has been that less coolant containers the supplier’s recommendation. Efficient fluid reclaimed and rebalanced mixture to be used are needed each month, which has increased the management can significantly increase savings when machine coolant levels drop. availability of valuable space in the workshops. so the project team’s first step was to stabilise coolant levels at the accurate rate of refraction. Lean payback Learning never stops By removing coolant and diluting it with With coolant levels under control, the team’s Following this success a future programme water, the fluid mixture was soon corrected, efforts had an immediate effect - eliminating will focus on sustaining the correct lubricity of while several previously empty 270 gallon the smoke and unpleasant odours. Employees the coolant - a measure that the project team containers were put to good use storing the have noted the improved air quality, and in anticipates will significantly increase tool life contaminated fluids. The constituent liquids the first four months following the scheme’s and further streamline the business.

23 Our Hunting Community Aberdeen celebration On the opening evening of the 2011 Offshore Europe exhibition and conference, Hunting held its seventh biannual Scottish/ Japanese party. The event, which took place at the Aberdeen Art Gallery, celebrates the company’s strong business and social relationships with its Japanese partners that span more than 30 years. Guests were invited to don colourful Japanese ‘happi coats’, before joining Bruce Ferguson with Mr Masakazu Tanimoto (below left) from MISI and Mr Akihiko Ishida from JFE Steel (right) in an authentic Kagami Wari ceremony - breaking the seal on a barrel of sake, imported especially for the evening. The gathering was also treated to a vibrant 10-piece taiko Japanese drumming display.

Aberdeen 2011 Decathalon It has been another year of intense sporting endeavour for staff at Hunting’s Scottish facility, after they competed in the Aberdeen Corporate Decathlon for the second year running. Kicking off in February 2011, various events are staged throughout the year, including canoeing, ballroom dancing, highland games and the personal health challenge - which sees a team’s fitness assessed by British military fitness experts. Two new sports, orienteering and basketball, were Time charter added to the list of activities, which the Hunting team entered with its customary seminar enthusiasm. The competition culminated in a glittering sports ball and award More than 70 guests from across ceremony - an evening of celebration for the tanker market attended Gibson’s the Hunting athletes, who won first place inaugural time charter seminar, which in the personal health challenge. The was held in the historic crypt of St sterling work of Team Captain Jennifer Ethelreda’s church in London. The Wood (below left) was also recognised event provided delegates an excellent when she was named Captain of the Year. opportunity to examine the important issues currently affecting the industry. Discussion was led by an expert panel, comprising: Philippe Evrard, Strategy Advisor, Total; Tim Horne, Managing Director, Teekay London; Rory Butler, Litigation Partner, Holman Fenwick and Willan. Rory’s colleague Holly Colaço produced a comprehensive paper on piracy. Steve Christy and Merrick Rayner of Gibson chaired the panel. Declared a resounding success by all involved, Gibson plans to repeat the event in the coming year.

24 Appointments and Promotions Hunting PLC is pleased to announce the following

Hunting PLC Hunting North America Scott George is the newly appointed Ian Park has been appointed Facilities President of Hunting Innova. Scott has Manager for the Hunting Badentoy and Andrew J Szescila has filled the place Jim Johnson has been promoted to been with the company for 12 years Fordoun offices; this key role will ensure vacated by George Helland and has the role of Chief Operating Officer of and was previously Vice President of that all buildings and interiors are kept in been appointed a non-executive Director Hunting Energy Services, following 23 Operations overseeing the day to day good order. Ian will also continue to head of the company. Andrew is a former years with the company. During this activities of the organisation at all levels. up marketing for the international group. executive of Baker Hughes Inc, where time Jim has demonstrated great ability Dave MacWilliam has been promoted he was Chief Operating Officer from in the international arena, where he Hunting Asia to Group Engineering Manager from 2000-2003. Currently he is also a non- has directed the company’s growth. Joe Kitney will be relocating to his previous role as Seal-Lock Manager executive Director of Frontera Resources These skills will be well-suited to his Europe. Corporation and between 2009 and 2010 new role, especially in light of Hunting’s Singapore to take up the new position was a Director of Nova Drill. Andrew recent acquisitions. His responsibilities of Managing Director, Hunting Asia Well Tony Laplante has been promoted will join Hunting’s Audit and Nomination include directing the group managers Intervention. This business unit is moving to Hunting Energy Services (Well Committees as well as taking on the throughout the organisation, facilitating to a larger facility, located in the west of Intervention) Engineering Manager. role of Chairman of the Remuneration the consolidation of new products and the island, which Joe will manage once Formerly Tony was the Welltonic Committee. executing the initiatives necessary to operations begin. Having spent several Engineering Manager. achieve the company’s future goals. years living and working in the region, After 10 years of service to Hunting, Joe has a good depth of experience of the George Helland has retired from the Assuming the role formerly held by market which he will apply to expanding Quality Assurance Board. George’s valuable contribution in Jim Johnson, J R Bateman has been on the company’s recent growth in this Greg Farmer has been promoted to his role as non-executive Director has appointed as Managing Director - area. helped position the company for growth Western Hemisphere, Hunting Energy Director Quality Assurance, Hunting in key areas of the world and we wish Services. He joins Hunting after a 28 Hunting Europe Energy Services. He has spent 17 years him all the best in his retirement. year career at GE Oil and Gas (previously involved in all aspects of this activity Vetco Gray), where he held several key Alan Reid has been promoted for the company. He will work with Sid Harper has joined the Hunting PLC management positions, including Senior to Director of the European Well each manufacturing facility, engineering corporate office in Houston as Manager - Vice President. Intervention division and will also department and marketing team. Financial Analysis. Prior to his new role, lead the expansion of the thru-tubing Greg takes on the role pioneered by Sid worked for companies such as Boeing Ken Oberholz has been promoted to division into new markets such as the Dean Goodson whose sudden death and Dresser-Rand and brings with him a the position of Director of Manufacturing United States and Africa. Alan has run shocked all of us but whose wisdom and broad experience of reporting systems, Technology. In his new role Ken will help the Welltonic business in Aberdeen for foresight endures. data extraction and analysis. each of Hunting’s business units coordinate several years and has considerable the company’s manufacturing strategy, Mike Webber has been appointed At the London office we welcome Mark experience of international well including developing best practices for intervention. Quality Assurance Group Manager - Total Jarvis as Group Financial Controller and the procurement of its manufacturing Quality Assurance. Mike’s responsibilities Karl Kent as Group Tax Manager. equipment. Ken will also continue to Doug Stuart has been promoted to include ensuring that the TQA system progress Hunting’s lean initiatives, which Deputy General Manager and Technical is properly implemented and maintains he has been successfully implementing in Manager for Hunting Equipment global conformity. the USA, Asia and Europe. Management Services.

.Lantern Raya celebrations The close timing of the Chinese Mid-Autumn Festival and Islam’s Hari Raya Puasa resulted in a combined day of celebration at Hunting’s Singapore facilities. While the Mid-Autumn or ‘Moon-Cake’ festival celebrates the symbolic reunion represented by the full moon, the Hari Raya Pasa marks the end of Ramadan. As part of the festivities, employees were organised into 10 teams and challenged to design a decorative lantern to be displayed during the shared celebrations. Traditional snacks, pastries, fruits and other varieties of food were served, before representatives from each team presented their lantern creations - each reflecting the joint celebration with colours, symbols and wording. Four judges were left with the tricky task of selecting three entries for a special prize. The team from Service Delivery and Purchasing was awarded the top prize by MD Daniel Tan for its presentation, which included the recital of an original poem.

25 Our Hunting Community Doffing acquisition WL Doffing, which was acquired in September 2011, provides high precision machining components to the global energy services industry. The Doffing business is focused on equipment used in MWD/LWD and provides critical tolerance machining, prototyping and first-pass specialist production services. Delivering products to exacting machining requirements is increasingly a feature of oil and gas drilling. Doffing’s expertise is excellently matched to Hunting’s existing advanced manufacturing capability. Additionally, the company holds intellectual property for manufacturing other key components used in the well bore, strengthening Hunting’s position in the Well Construction and Completion market. Founded in 1977, the company operates Face Off Against Cancer from one 30,000ft sq facility in Houston and currently has a workforce of 75 In support of the Canadian Cancer personnel. Society’s Face Off Against Cancer campaign, a team from Hunting’s Calgary office recently competed in a charity ice hockey tournament. Despite stiff competition from former Project Harper update players in the National Hockey League, the Hunting team rose to the challenge As the Review was going to print, the co-location of seven of Hunting’s North East in spectacular style, winning its division Scotland facilities into two major sites at Fordoun and Badentoy, was nearing and raising more than CDN$8,000. All completion. Following a programme of expansion, the Badentoy site will support proceeds from the event will be used to the Well Intervention and Thru Tubing business while Fordoun will oversee all OCTG fund Canadian cancer research, support threading and tubular management services. Staff will be ready to start the New Year people living with the disease and provide with state-of-the-art facilities and equipment. comprehensive cancer information in the Demonstrating the company’s commitment to its North Sea customer base, the move country. underlines its intention to set the standard in service within the industry.

JPM Corporate Challenge Last summer saw a combined London offices team, comprising 12 determined runners from HQ and Pensions, compete in the 2011 JP Morgan Corporate Challenge, London Series. Staged in Battersea Park, the annual 5.6km road race was held in aid of Barnado’s, a UK charity working with disadvantaged children and young people. In all 26,000 participants from 332 London based companies took part in the event.

26 Specialty acquisition The purchase of Specialty Supply in November 2011 completed last year’s acquisition programme. The company manufactures precision machined MWD parts, used in directional drilling markets around the world. Established in 2003, the business operates out of two Houston-based facilities. The company additionally provides a comprehensive range of running gear, drill pipe screens and a complete line of down- hole filter sub rentals. Since inception, Specialty has been prominent in the growing MWD market, which complements Hunting’s Drilling Tools business. These benefits will be pursued with Hunting’s operational footprint in key shale drilling regions.

Indonesians break fast Employees at Hunting Energy Services Batam facility, came together last August with local community leaders and business partners to mark Ramadan, Islam’s holy month of fasting. Breaking the fast at sundown is often a community affair and this special occasion was held at the Pusat Informasi Hotel in Batam Centre. The break-fast was addressed by HM Ir Nur Syafriadi, Speaker of the Batam Parliament, who led the prayers and praised the community’s emphasis on mutual respect, regardless of its religious affiliation.

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

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

Hunting Energy (North America) 2 Northpoint Drive, Suite 400, Houston Texas 77060-3236, USA Tel +1 281 442 7382

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

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

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

Gibson Shipbrokers PO Box 278, 16 Ely Place, London EC1P 1HP, UK Tel +44 (0) 20 7667 1000