WINTER 2009-10 No177 IN ISSUE 177 WINTER 2009-10

4 Hunting de Mexico 8 Going 11 Chemical 14 Company opens for business underground injection system organisation chart Located in Mexico’s northern ’s underground system is After years of painstaking A snapshot of Hunting PLC, its industrial heartland, Hunting’s so iconic it has been referred to on development, a totally new system constituent units, locations and the nascent Mexican workshop is everything from tourist T-shirts to for the subsea arena is now being roles they fulfil in support of the adding a new dimension in regional works of art. We chart its history deployed in the world’s ultra deep upstream energy sector customer support and how it set the style for travel water projects maps across the world

16 Kicking off in 18 Wedge-Lock 20 Mother Russia’s 22 APRS - an industry South Africa connection ahead export choices accepted technology Anticipation for the first FIFA A major new Hunting product line Overtaking Saudi Arabia in volume Hunting’s Annular Pressure World Cup™ Finals ever to be is coming to market that will help of crude oil exports, the Russian Release System has now achieved held on African soil is mounting energy operators drill horizontal Federation has been significantly industry-wide recognition for ahead of this summer’s sporting and highly deviated wells expanding its oil and gas pipeline its ability to equalise pressure extravaganza network differentials in well casing 26 News from our community

Hunting Review; the external house magazine of Hunting PLC Cover 23 Saki season 24 Fordoun and 3 Cockspur Street, London SW1Y 5BQ, UK The Dojo Drummers customer party Conroe update [email protected] - a travelling group of Edited by Nick Johnstone and the Mugen Taiko Dojo Coinciding with one of Europe’s Hunting’s Fordoun tubular largest energy industry gatherings, management facility is nearing Victoria Bailey, Campaign Marketing. - perform at Hunting’s [email protected] party in the Aberdeen Hunting Energy exhibited its well completion of phase one while Designed by Anthony B Ainley MCSD Art Gallery intervention capability at Offshore ground has been broken for a new [email protected] Europe and held a Japanese and site for Drilling Tools in Texas Produced and printed by Scottish themed customer party to Duffield Printers Ltd celebrate [email protected]

2 Tomorrow’s world

We have recently seen crude oil prices trading around $80 bbl - some 16 times that of natural gas at $5mm Btu. Historically the average differential has been closer to six times more so it will be interesting to watch how this anomaly plays out over the coming year. What we can also observe, even if occasionally masked by political rhetoric, is the continued depletion of the world’s energy resources while viable alternatives are a long way over the horizon. In order to fuel economic recovery and growth, that gap will have to be spanned by new technologies to extract our energy from increasingly difficult to access and complex formations. Hunting continues to develop the tools and the expertise for the major national and international energy companies whatever their difficulty and wherever their operating needs. We highlight some of these technologies and the expansion stories behind them in this, the 177th issue of the Review. We take a close look at one of the latest members of the Hunting fold which has developed an innovative chemical injection system (CIS) that will help to open up vital reserves in the high temperature, high pressure subsea environment that is becoming the working norm. National Coupling Company’s acquisition last year has already made a significant addition to our Well Intervention capability and the CIS has great potential. In this same segment we make mention, in our news roundup, of the recent purchase of Welltonic which we welcome into the Hunting family of companies. We also note the continued success and recognition for our annular pressure relief system (APRS). Nearly all the major energy companies have used this technology which is now viewed as the industry standard for mitigation techniques against the collapse of OCTG from annular pressure build up. The OCTG market has had a long regard for the Seal-Lock range of premium threaded connectors, which will now be joined by Wedge-Lock. This is designed specifically for the highly deviated and horizontal drilling market where the ability to withstand the extreme stresses of compression and torque are paramount. Geographic reach has also been enlarged through the year both by acquisition such as in Indonesia but also through organic growth. Hunting’s new facility in Mexico has broadened our ability to support customers in Central and South America as well as NAFTA countries. Other notable facility projects in this issue encompass the completion of development phase one at Fordoun in and the preparation of a new site in Conroe Texas. A changing world requires an innovative culture to succeed and change alongside it. We look forward to the coming year and that journey - and offer best wishes to those who will travel with us.

3 Mexican wave Hunting de Mexico opens for business

4 he third largest city in Mexico, Monterrey A cool oasis Model businesses is the proud provincial capital for the Nestled into the mountains, the city was The geography of the city and disposition of Tstate of Nuevo Léon. Overlooked by the founded by a spring whose water gave respite the populace arguably form the basis on which 5,700ft peaks that form the aptly named Cerro from the famously hot and arid climate, where modern Monterrey has become a thriving de la Silla, or Saddle Mount, it is located on daytime temperatures regularly exceed 100ºF, industrial centre. The tough environment bred the northern rim of the Sierra Madre Oriental for the duration of the hottest three summer an entrepreneurial and self sufficient business mountain range. months. In terms of its early history as a community. Locally produced cement and On a well trodden trade route to San Antonio settlement, a sparse semi-nomadic population steel led to it becoming the premier Mexican it lies some 150 miles south of the border of Chichimecas was displaced by the incoming construction materials supplier, which was from the USA and Texas but now benefits from Europeans during the 16 th century although boosted in the early 20th century by the American markets brought about by the North the small fragile colonial presence did not formation of Compania Fundidora de Fierro y American Free Trade Agreement (NAFTA). It become permanent until the first officially Acerco, a world class steel plant. is further served by major road and rail routes recorded settlement in 1596. A strong work, The technological know how required to that link it to Mexico City to the south and the community and religious ethic were needed to underpin these industries spawned a series Pacific coast to the west. It is easily reached sustain these early settlers led by Don Diego of leading academic institutes and social from Tampico on the Gulf of Mexico. Once de Montemayor, who named the city. At first developments in medicine and housing, maintaining the historical ties to Europe, this just a dozen or so families eked out a modest which were by nature both philanthropic port now links Monterrey with the global trading existence, while the present day metropolitan and necessary for growth. Similarly a home- community. Modern international airports area covers well over two thousand square grown brewing industry - Monterrey is home complete transport access to world markets. miles and encompasses four and a half million to Cerveceria Cuauhtémoc Moctezuma which people. This is a footprint and population produces international beer brands such as Sol comparable to . The prodigious and Dos Equis - created clusters of expertise growth of the city is encapsulated by a rise in packaging, glass and steel processing for in population of two million in the last two bottle caps with allied social programmes decades alone. including private unions. In the 21 st century the city retains a first class reputation for steel processing amongst a portfolio of high tech industries and associated financial services. Hot spot With both the desire and need to expand its geographic footprint to service customers in the international energy business, the arrival of

Ricardo Barbosa, Plant Manager

5 Hunting de Mexico would seem like a foregone contractor at the El Sabinal industrial park, to conclusion but Jim Johnson, the Director construct a greenfield facility of 25,000sq ft responsible for Hunting Energy Services, there. The plan was to build a manufacturing ensured that the usual meticulous footwork and workshop, associated office accommodation planning was undertaken. On paper the country and additional stabilised land for moving heavy has obvious attractions as an inward investment goods. Although the smallest of the facilities candidate and in early 2007 the decision was in the development, the option for roof line taken within Hunting Energy to take this a expansion and further land availability was step further. As well as the NAFTA and a free also factored in. Early spring of 2008 saw the trade accord with the EU, the Mexican federal design of the facility, layout and negotiation of government has numerous bilateral agreements the construction package completed and capital with many countries in Central and South expenditure approved. With yet another plant America but also the rest of the world. ready to move from the architect’s drawing The question of location within Mexico board into reality, project leader Ron Glanders was answered by the support of the regional gave the green light for ground to be broken for government of Nuevo Léon, its geographical Hunting de Mexico on April 1, 2008. position, infrastructure and open business culture. Following initial groundwork by Rapid progress John Feuerstein the investment proposition Two years from inception, the facility opened was assessed in further visits by senior for business in March 2009 with Ricardo management: Bill Price, Jim Tubbs and Eddie Barbosa, a lifelong Monterrey resident Johnson. One of their first tasks was to assess with considerable experience in the sector, and make the choice between buying an appointed as Plant Manager. Tasked with The completed facility awaits machine installation... existing business or finding a new site. By July leading the business, an initial order for 2-Step 2007 a narrow focus on metropolitan Apodaca material was successfully fulfilled, proving was agreed - a place where other oil service the capability of the operators and integrity of giants such as Halliburton and Schlumberger the management systems - especially Quality had already been established. The aim then Assurance. An initial workforce of four has ...and the new machinery being assembled and tested was to find somewhere in close proximity to now risen to 17 with eight qualified operators, the main highway to the border with the USA two supervisors and interpreters, and an and the airport. Further study of available administration staff led by Financial Controller government tax benefits and capability for Jorge Bustamente. The nature of the work skills training, completed the human resource has since become more complex and, despite and commercial the cyclical dip in the oil and gas service considerations industry, is perfectly poised to take advantage while the options of opportunities presented in both the domestic for location were and international markets, old and new. still being weighed. A world class facility with state of the art machining capability and a qualified Ground breaking workforce has now embarked on this new By September the commercial venture for Hunting, establishing location had been its first presence in Mexico. The vibrant city of identified and top Monterrey builds on the foresight of its inspired level agreements industrial forbears, who encouraged the had been reached technology clusters and embedded the creative with VYNMESA, ethos - a legacy that has endured. a developer and

6 Monterrey has a long and proud history of industrial achievement

Getting down to business A brand new facility with state of the art machinery and fully trained staff • Manufacturing: Completion accessories, Slick Line tools and pressure control components • Threading: Hunting premium threads such as Seal-Lock, API Hunting modified, StubAcme and API standard lines • Machining: Turning via six Mazak CNC turning machines and one manual lathe, suitable for bars of 3 to 14.7in. Milling with dedicated Mazak milling machine which handles 20 x 20 x 40in bars and 4th axis • Process and finishing: Copper plating, zinc phosphate, manganese phosphate, glass bead blasting and painting, all in house • Quality Assurance: Optical comparator, The completed facility awaits machine installation... a full set of gauges for thread inspection and Mic-Trac MT-3000 ensure that Hunting quality remains consistent

...and the new machinery being assembled and tested John Feuerstein, Ricardo Barbosa and Jorge Bustamente

7 his train is going all stations to Upminster, please mind the closing doors,’ - an often ‘Tunnoticed announcement that marks the start of the day for hundreds of busy London commuters as they fall familiarly into the background buzz of the morning rush into work. Indeed, while navigating the crowds, jostling for a seat, reading the newspaper, listening to music or even catching up on a few minutes sleep, one could be forgiven for failing to appreciate the history behind each journey. Not only was the London Underground the first system of its kind in the world, it was also the first to operate electric trains from 1890. Responsibility for the network has changed hands many times over the years. Originally, the lines of the present London Underground were built by various private companies which, on the creation of the London Passenger Transport Board in 1933, eventually became Since its inception London Underground has been part of an integrated transport system. Yet it was not recognised as a single entity until at the forefront of several world firsts - including its 1985, when London Underground Limited was set up by the then Prime Minister Margaret iconic passenger map Thatcher. Unofficially known as ‘the Tube’ it finally became a wholly owned subsidiary of Transport for London (TfL) in 2003. Putting London on the map Railway construction in the began in the early 19th century and by 1854 six separate railway terminals had been built around the centre of London - a new and effective solution to ease the traffic congestion which had increased in the capital significantly during this period. Fast forward more than 150 years and the London Underground network that greets us today covers 249 miles, 11 lines and 270 stations and has evolved into a far superior system of transport. And all of this is reflected in the network’s map - a design classic. Instantly recognisable, this iconic topographical design has become part of the essential itinerary for any newcomer wishing to navigate the capital city, while even the most savvy of Londoners can be seen consulting the map for the swiftest route to their destination. Originally, the various lines were presented geographically, often superimposed onto road maps. This however presented both visual complexities and, more fundamentally, problems of space as the central stations appeared closer together than the outlying stops. The concept behind the modern, stylised Tube map, characterised by its non-geographical layout, originates from the work of Harry Beck. Beck was an electrical

8 engineer who updated and amended the existing, problematic diagram while working at the London Underground Signals Office in the 1930s. Believing that passengers were far more concerned with establishing how to get from one station to another and where to change as easily as possible, rather than seeing a geographically accurate plan, Beck put forward his concept of a full system map which was clear, colourful and easy to understand. Although his radical proposals were met with initial scepticism from his employers, following its public introduction in 1933, the colour-coded pamphlet became so instantly popular that not only was a large reprint required after just one month, but a template of his illustration has been used on the Tube ever since. The design has also been the inspiration behind many other urban rail and metro maps worldwide, while various bus and transit companies have also developed a similar concept. In 1964, for instance, the New York City Subway system, which also runs separate lines over shared tracks, replaced a map that used only three colours with a map that used a different colour for each line. Beck also produced at least two versions of a diagram for Cockspur Street the Paris Metro. Beck continued to update the Tube map on a freelance basis but by the 1960s, following the appointment of the designer Harold Hutchinson, many changes such as the inclusion of the Victoria and Circle lines, were introduced to the map without his approval. Unsatisfied, Beck fought to regain control of the design by putting forward an even more simplistic plan based on his earlier ideas. When that too was rejected, he accepted defeat - although he continued to create sketches and drawings for the map until his death in 1974.

9 Mind the gap station or stop with the names of prominent small number of stops which, although once historical figures. The artist Simon Patterson busy, have fallen into disuse over the years. Further controversy has surrounded a recently was shortlisted for the Turner Prize in 1996 for Down Street station for example, which closed revised edition of the Tube map, which his painting, The Great Bear, which remains the in 1932, lies between Green Park and Hyde puzzled many with its omission of the River most famous of these humorous replicas. Park Corner on the Piccadilly Line and was, Thames. TfL has disclosed that the decision on rare occasions, where Winston Churchill’s was based primarily on customer feedback, Ghost train World War Two cabinet meetings were held. which suggested that the previous map had Running deep below the bustle of the city, at a Similarly, Brompton Road tube, located become increasingly cluttered, following maximum depth of 221ft, and with stations that between Knightsbridge and South Kensington, the continued expansion of the system. ‘By have been in use since 1863, it is no wonder was used as a WWII anti-aircraft command cleaning up the map, we have tried to produce that the Tube has a long history of spooky centre and maps from the era are displayed on the best possible journey planning tool for stories which report on the haunting of certain its walls to this day. our customers, reflecting the principles of lines. Some of the best known legends include Ghost stations are also in high demand as Harry Beck’s original and innovative design Anne Naylor, a 13-year-old trainee hat maker, movie locations and the London Underground - simplicity,’ a TfL spokesman confirmed. who was murdered in 1758 by her trainer and Film Office handles over 200 requests a month. Nevertheless this alteration has not convinced the trainer’s daughter. People claim to hear her Although filming has taken place all over the many travellers who saw the Thames as an cries echoing down Farringdon station from the network, the most common location is the easy way to pin point locations and believe its spot where she died. Since the 1950s, staff at disused Aldwych station, which has notably exclusion is disorientating. Covent Garden station have reported seeing starred in movies such as V for Vendetta and Immediately identifiable as a symbol of a tall man in a frock coat, hat and gloves - Atonement. The Tube has also been used in London, there are many cultural references to thought to be the ghost of William Terriss, an many blockbusters including Harry Potter the map, including parodies used particularly actor who was stabbed to death at the nearby and the Philosopher’s Stone, The Bourne in advertisements for unrelated products and Adelphi Theatre in 1897. Following the tragic Ultimatum, Love Actually and Die Another Day. services. Visitors to the capital can also find death of 173 people in its stairway during available a vast array of accessories which World War Two, the screams of women and Thanks to the London Transport Museum incorporate the map into their design, including children are allegedly audible from the stairwell for lending pictures from its archive. The various spoof versions which, although at and ticket hall of Bethnal Green station. museum’s latest exhibition Suburbia runs until first glance appear identical, substitute each The eerily named ‘ghost stations’ refer to the March 31, 2010.

On the right track: • Each Tube train travels 76,800 miles every year • Over a billion passengers are carried on the Tube annually • 45 per cent of the network is in tunnels • The network has 412 escalators with Angel station boasting the most vertiginous at 197ft, with a vertical rise of 90ft • Around 13,400 staff are employed on the network • During the morning commuter peak, Waterloo is the busiest station, with 51,100 people entering it. The busiest station in terms of passengers each year is Victoria with 76 million • The Underground name first appeared on stations in 1908. LU’s iconic logo, ‘the roundel’ (a red circle crossed by a horizontal blue bar), also appeared in the same year

All pictures including Beck’s map ©Transport for London Collection of London Transport Museum

10 The acquisition of National Coupling Company in June 2009 has added significant subsea capability to Hunting Energy Services, a chemical injection system (CIS) being one of the most exciting developments

Gathering the team more that are now becoming the usual working environment in the Gulf of Mexico. The CIS Despite earning a reputation for the design A full review on where NCC could best The National Coupling Company (NCC) and manufacture of valves and hydraulic apply its expertise produced a focus on chemical injection system (CIS) is an couplings and associated technology for the chemical injection - the process to regulate active flow control system that works high pressure, high temperature subsea and optimise flow rate from a producing field. through positive displacement metering arena, the management team at NCC has long It is at these new depths where costs can to deliver multiple chemicals to individual harboured greater ambitions. When President rise exponentially and their containment is subsea wells at controlled and verifiable Gary Weathers and Larry Rogers, VP Sales critical. Considerations, such as the sheer injection rates and Marketing, were joined by Dick Watson, quantity of umbilical line employed, become VP Engineering, in late 2003 it reunited a acute; these form the service lines that It comprises a double acting cylinder, a team with many years experience of working connect the production platform to the seabed stepper motor operated four way valve together. The opportunity arose, with the infrastructure. The cost of this alone can be and an electronic controller additional appointment of Ken Oberholz as VP $100,000 per mile at the factory gate. The The system is available in both dual and Operations in late 2003, to take the company host surface platforms typically service subsea single models and utilises an automatic a step further with the development of its first installations at long offset distances resulting flushing cycle that completely mitigates proprietary subsea system as opposed to sub in complex, longer and therefore more the need for subsea filtration assembly. With the addition of Rob Smith as expensive lines. Technology Manager to handle the electronics It is remotely operated and monitored Rationalising connectivity in real time as its electronic controller and integration, the team was finally tasked The original design objective for the NCC team constantly analyses flow data and with launching a world beating chemical in this regard was simple: to eliminate as many automatically adjusts its active valve injection system. of the umbilical lines and costs as possible, orifice to accommodate a variety of ‘It’s not exactly ancient history,’ explains connect those necessary to the wellheads and changing flow parameters Larry Rogers, ‘but demand has been there ever since we stepped off the shelf,’ by which he carefully meter the chemical injected into each refers to the ultra deep waters of 15,000ft and well - since each has a unique requirement.

11 Topside umbilical simplification

The important thing here is the metering device which has to report and remotely adjust injection flow over the life of the well. Customising test regimes to assure The range in flow and therefore capability of product integrity the CIS is known as the ‘turndown ratio’, the differential in flow rate expressed as a simple multiple. Standard industry practice has a turndown ratio of 10:1, which is a little clunky given the extremes at which the operations take place and the marginal costs that remain uncontrolled at that scale. In comparison the NCC turndown ratio is closer to 3000:1. It is actually qualified to deliver chemicals at an accurate injection rate between 1 and 2,880 gallons per day - easily allowing for a performance range of between 1 gallon per day and 500 gallons per day which is sought by the industry. This is also delivered at a level of accuracy previously not experienced. The injection is controlled to within 5 per cent of the flow set point or 1 per cent of its full scale. It is designed to handle all chemicals under different pressures and without regard to fluid viscosity while being tolerant to contamination. Until now filters have had to be used with very high operating costs. Costs involved in a typical filter change cycle using a remotely operated vehicle (ROV) are in the The basic technology for the CIS comes from unit that integrates into the operator’s well region of $1m. The NCC system monitors the pipeline industry and the meter proving intervention strategy without being reliant on constantly for contamination and automatically world, while leading edge materials had to further sub assembly or service interventions initiates a self-flushing cycle when required. be tested for critical components, such as for day to day operations. the active valve orifice which would have to Patient progress survive whatever was thrown at it through the Early adopters Diligently developed to satisfy all the lifetime of the well. It was all packaged together Market recognition has started with the requirements over a long development period - - with robust and sophisticated electronics for deployment of the CIS to Petrobras on its the most difficult and complex of Dick Watson’s processing the algorithms - to cope with the Cascade field on the Walker Ridge Block some career - at times progress was agonisingly vagaries of production and then compete as a 180 miles south of the Louisiana coast. This is slow. This was partly down to scarce resources system in all the varying conditions. a fast track project that is expected to employ at NCC, where traditionally they were working Other competing methods for delivering other ground breaking technology with what is with just one engineer, one designer and chemicals to the wellhead have of course been anticipated to be the world’s deepest floating one programmer. The system also had to be devised and developed. Some of the more production storage and offloading facility in developed out of operating cash flow. Started sophisticated examples have been designed 8,000ft of water. After an initial acceptance in 2003, the project had a five year gestation for the North Sea where they have typically programme, production is designed to ramp period and was finally launched in 2008. The met the criteria for deep sea applications but up during the first quarter of 2010 with a result however, stands head and shoulders have brought their own complexity with their development programme designed for forty above the alternatives in the market place operation. Reliant on filtration for contaminant subsea trees with appropriate chemical today. Qualification testing of the system has removal and with a low turndown ratio, they injection systems expected for delivery in included well over two and a half million cycles, tend to work as bundled service packages 2010 and at further staged intervals until full equivalent to over 100 year’s of service in a rather than as standalone systems. The NCC production is achieved in 2011. fifty gallon per day injection application. system brings the advantage of a self contained The major international oil companies have

12 Dick Watson, Rob Smith and Larry Rogers

Flow testing

The complete unit ready to ship

been quick to acknowledge the arrival of no maintenance is required so the interface the new technology and have been swift to remains very robust and straight forward. recognise the advantages. Exxon, Chevron Having been through many of the acceptance and BP are currently running their own hoops set individually by the major energy intricate appraisal programmes and further companies for the Gulf of Mexico from its offshore deployment depending on precise rig home base in Texas, the company is looking to scheduling. Individual test cycles have been lever the presence of Hunting’s international undertaken for different chemicals in house footprint in all the offshore centres of the world in Stafford, Texas. Some of the chemicals are where cost savings and technical advantages volatile, flammable and/or toxic so have to be are sought. handled carefully which adds to the complexity of the trials. Further acceptance trials by the international and national oil companies are expected to approve the new technology at new depths in international waters. Hypobaric chamber being installed Right from the beginning the CIS was to fully test every system designed to fit seamlessly into the customer operation and has a custom designed interface for instant familiarity. Typically the user interface is set up to display operations on the user’s usual control screens, so look and feel are seamless and simple to transfer to the offshore environment. Once installed

13 Excellence in Energy Services for over one hundred years

Hunting PLC Gibson Shipbrokers Hunting Energy Services Corporate head office Shipbroking Well Construction www.hunting.plc.uk www.eagibson.co.uk www.hunting-intl.com +44 20 7667 1000 •HG Management Services Americas London, UK Management (London) +1 281 442 7382 Services covering: Asia Pacific •Huntaven Properties +65 686 16176 Property, London Crude Oil and Products Specialised Tankers Europe & Africaº •Hunting Knightsbridge Holdings LPG and LNG +44 1224 787000 Finance, London Dry Cargo Middle East Sale & Purchase +971 4 886 5796 •Field Aviation Canada Offshore Aircraft Engineering, Ontario Consultancy & Research OCTG, Premium Connections •Hong Kong & Manufacturing •Houston •Calgary, Canada •London •Nisku, Canada •Shanghai •Tianjin, China Hunting PLC •Singapore •Velsen-Noord, Holland •Batam, Indonesia Publicly quoted holding company •Monterrey, Mexico +44 20 7321 0123 - London UK •Aberdeen, UK •USA Hunting PLC USA Corporate Office - Houma, Louisiana +1 713 595 2950 - Houston - Marrero, New Orleans, Louisiana - New Iberia, Louisiana Hunting PLC is an energy services provider to the world’s leading - Rankin Road, Houston, Texas national and international oil and gas companies. Established in 1874 it is a fully listed public company traded on the London Stock Drilling Tools: Mud Motors, Exchange. The company maintains a corporate office in Houston and Non Magnetic Drill Collars, is headquartered in London. Directional Drilling Tools •Nisku, Canada The company manufactures and distributes products that make the •Dubai, UAE extraction of oil and gas possible and has licensed partners around •Grand Junction, Colorado, USA the world for proprietary products and its own principal operations in: •New Iberia, Louisiana, USA •Oklahoma City, USA Canada | China | Dubai | Holland | Hong Kong | Indonesia •Conroe, Texas, USA Mexico | Singapore | United Kingdom | United States of America •Casper, Wyoming, USA Excellence in Energy Services for over one hundred years

Hunting Energy Services Hunting Energy Services Hunting Exploration & Well Completion Well Intervention Production www.hunting-intl.com www.hunting-intl.com www.hunting-intl.com Americas USA, Canada, +1 281 363 2406 +1 281 442 7382 Central & South America USA Non-Operator Asia Pacific +1 281 209 3356 •Tenkay Resources +65 68616176 Europe, Africa, Russia & CIS - The Woodlands, Texas, USA Europe & Africa +44 1224 222500 +44 1224 787000 Middle East Middle East +971 4 886 5796 +971 886 5793 Far East & Australasia Accessory Manufacturing, +65 6863 0668 Speciality Threading & Manufacture, sales and service of Advanced Tubular Systems Slickline, Wireline and Pressure •Calgary, Canada Control Equipment •Tianjin, China •Velsen-Noord, Holland •Jurong, Singapore •Batam, Indonesia •Aberdeen, UK •Monterrey, Mexico - Bridge of Don •Jurong, Singapore •Houston, Texas, USA •Dubai, UAE - Rankin Road •Aberdeen, UK •Houma, Louisiana, USA - Badentoy - Capital Boulevard - Fordoun Subsea: Hydraulic Couplings, Valves - Montrose & Chemical Injection Systems •Houma, Louisiana, USA •National Coupling Company •Houston, Texas, USA - Stafford, Texas, USA - Beaumont Highway - Highway 90 Thru-Tubing Downhole Tools & - Ramsey Road Equipment - Rankin Road •Hunting Welltonic •Lafayette, Louisiana, USA - Aberdeen, UK •New Iberia, Louisiana, USA - Aksai, Kazakhstan - Dubai, UAE - Singapore

15 Kicking off This summer’s sporting spectacular is the FIFA World Cup™ which is taking place he 2008 Beijing Olympics have faded goal scorer to date. Considered by many as the into all but a distant memory and with a on the continent of greatest striker in the history of football, Ronaldo Tcouple of years still to go before the world’s has notched up 15 goals in three tournaments. athletes reconvene in London in 2012, the focus Africa for the first time Not far behind however is West Germany’s Gerd this summer falls firmly on football, as the highly Müller, who dribbles in a close second with 14 anticipated FIFA World Cup kicks off in South goals netted in just two championships. Africa in June. Broadcast globally, the World Cup generates attention and discussion on an almost Top seeds are Fever pitch unrivalled scale. Figures show the championship As the host of the 2010 tournament the to be the most widely-viewed sporting event in South Africa Republic of South Africa automatically qualifies, the world and - with an estimated 715.1 million although the country’s national team, known as people tuning into the 2006 final in Germany - Argentina Bafana Bafana (The Boys), has previously only 2010 promises no less of a sporting spectacle. Brazil taken part in two FIFA World Cups. Beating England both Morocco and Egypt, the vote - a secret Waiting for the whistle ballot taken by the Fédération’s 24 executives - Since the tournament began in 1930, this Germany was announced by FIFA President Sepp Blatter international championship has remained in Holland in Zurich in May 2004. its current format and has taken place every South Africa’s bid had been seen from the four years, with the exception of 1942 and Italy outset as the frontrunner and was described by 1946 because of World War II. It comprises the Spain the FIFA inspection team as ‘excellent’. It will all-male national squads of countries which are be the first African country to host the event members of the game’s global governing body, in FIFA World Cup history. For a country that Fédération Internationale de Football Association is so fanatical about football, the quest to get (FIFA). Before being able to represent their Extra time the support from FIFA had become all the more country on an international pitch however, the • The Republic of South Africa has nine fervent following the huge disappointment of teams must play each other in the preliminary provinces and three capital cities: losing out to Germany to host the 2006 event by group stages, which take place during the Bloemfontein (judicial), just a single point. preceding three years to each championship. Cape Town (legislative) and The nation’s jubilation at success was Once 32 teams have qualified, the tournament Pretoria (administrative) especially significant following an era of concludes in the FIFA World Cup Finals, during infamous isolation and the historic end of which the competing countries contend for the • There are 11 recognised languages, but apartheid. In 1976 the suspension of South hallowed Cup, at venues within the host nation. English is used for most official purposes. Africa’s whites-only football association was Of the 18 tournaments that have taken place Football is colloquially referred to as ‘diski’ turned into a full blown exclusion from the since 1930, 75 nations have participated, 11 of • 30 billion television hits are expected Fédération following the violent response of the which have made it to the final. Just seven have during the entire competition country’s police to a student uprising. South won the title. As the only team to have played • An estimated 500,000 fans are African football was plunged into a seclusion in all 18, reaching victory a record five times, that lasted 15 years. As apartheid began to Brazil is the most successful team in FIFA World expected from overseas for the duration of the tournament dissolve in 1990, reintegration into FIFA soon Cup history, with its striker Ronaldo Luis Nazário followed and the foundations, which were once de Lima topping the list as the overall leading divided along racial lines, established the South

16 African Football Association as a single body. Whereas previously some of the country’s most celebrated footballers, such as Jomo ‘the Black Prince’ Sono, were denied the opportunity to demonstrate their skills in the national strip, during the last decade the sport has come to be seen as a mirror for society - a game represented by all races and creeds. The significance of this new identity is emphasised by the 2010 FIFA World Cup™ Official Emblem, which FIFA has described as, ‘unique, vibrant and dynamic, graphically encapsulating the African continent’ but still, ‘dipping into South Africa’s…colourful heritage for inspiration’. The energy of the figure captures the country’s inherent enthusiasm and celebration of the game, while the bright background represents the South African flag. Zakumi is the official mascot for this year’s Cup - a leopard with colouring that reflects the players’ home strip and whose name derives from ‘ZA’, the international abbreviation for South Africa, and ‘kumi’ which is the word Everyone gets in on the act ten in many African languages. With a juxtaposition of rugged natural beauty and busy cities, fans travelling to South Africa will be treated to a grand tour of the land, as the nine stadia are located across the country. The Green Point Stadium, situated in Cape Town at the foot of the iconic Table Mountain, and the Port Elizabeth Stadium, which boasts a 40 km stretch of protected beaches nearby, are just two of them. Football comes home? Eager to finally extinguish the painful memory of the dismal 3-1 defeat to Portugal in Germany 2006, this year England’s ‘Three Lions’ will be going for gold in South Africa. Under new management, a promising record in the qualifying matches and with a talented line up of young stars, hopes for the team have been set high by the thousands of fans who will accompany them to South Africa. However, odds on England’s chances to win the Cup have lengthened considerably since being beaten by Brazil in November 2009. Having not won the tournament since 1966, coach Fabio Capello’s squad finds itself once again under considerable pressure to perform. Although there is much expectation on the younger players such as Wayne Rooney, it is the world renowned veteran David Beckham who continues to capture the most attention and upon whose abilities most fans rely. As the second most capped England player, this could be Beckham’s last chance to bring the trophy home. But the nation will have to watch and wait until June to see if England really does make it.

17 Wedge-Lock ahead

18 Doyle Reeves

broadly speaking the Appalachian region. Directionally drilled and Of course the practicalities of employing these techniques bring the construction and • The Wedge-Lock Flush (WLF) with horizontal wells continue completion of the wells into sharp relief. New integral true flush 60-70 per cent pressures are encountered in the well bore to tension efficiency to test the limits of ensure the product flows. Highly deviated wells, turning through 90 degrees and bending to • The Wedge-Lock Semi Flush (WLSF) connection technology access numerous pay zones, generate extreme with expanded box with 70-80 per cent pressures on the pipe and associated joints. tension efficiency while providing the The resulting high torque, high compression environment brings special challenges for • Wedge-Lock Coupled (WLC) with impetus for innovation. the casing and connection community. While 100 per cent tension efficiency development has been accelerated by the shale The development of play, the applications are clearly not limited by geography or formation. Hunting’s Wedge-Lock Unsurprisingly it is here that Hunting Qualification testing is nearing completion Energy Services and the premium connection as the Review went to press for a 5in WLF product line is looking to team, with Director of Engineering Doyle connection, which will allow as per standard Reeves, continue to be at the forefront of industry guidelines the qualification of 4½ in push these boundaries the industry, designing new thread forms to and 5½ in sizes. The qualification for a larger meet tomorrow’s challenges. Sustained and diameter WLSF should be completed in the 2nd yet further intense work has been progressing steadily to quarter of this year and the design parameters produce a major new product line. As with all for the WLC version are set to be completed new Hunting designs, innovations are never and testing concluded in the second half of next omestic US gas production has witnessed unleashed on the market until they have been year. huge changes over the last few years rigorously assessed in lab and field trials - so Das production from traditional sources the Wedge-Lock series is still being subjected The prospect has dropped by as much as 20 per cent to the highest levels of testing, in the toughest The very success of these natural gas recovery to be replaced by what used to be termed conditions possible. techniques must ironically, be partly responsible ‘unconventional’ sources. This is especially the for the historic low prices and abundant supply case for tight gas and a gas shale deposit where Perfect seal currently being enjoyed. This is probably a the Federal Energy Regulatory Commission The Wedge-Lock design philosophy is to good thing for power generators and ultimately (FERC) expects production to double over the produce a highly competitive design series consumers at this point in the economic cycle, next decade until it satisfies a quarter of all US that has to be operator friendly in a complex but as the economy turns, the onus will once natural gas demand. work environment. The brief continues to again be on the operators to find ways to extend demand a higher performance rating and production and contain costs. Thanks to the Shale play smaller dimensional envelope than is currently success of advanced drilling techniques and As technology and pricing points have conspired available. The series will be quicker and simpler the introduction of Wedge-Lock the industry to change the profile of the formations being to deploy with fewer turns from stabbing to can look forward to the prospect of achieving worked, it is no wonder that the extraction power tight. This gives a capability for rotating a secure, long-term gas supply with Hunting techniques have also evolved. Thick layers the casing itself as it is worked into position. suitably positioned to make this happen. of shale are found in most sedimentary The cost to the customer will be less with basins but have proved elusive to tap until advanced manufacturing techniques employed the development of the Barnett formation in and with improved resistance to damage northern Texas was ramped up in 2002 using and galling. The geometry of the wedge and extensive horizontal drilling and hydraulic dovetailed thread form essentially allows for a fracturing techniques. These have since been connection with unlimited torque capacity while put to good use in the Haynesville and Fayetville providing a metal to metal, gas tight seal. The shale deposits and will have to be further new product line will include the design and developed to access the Marcellus reserves - development of three configurations:

19 Mother Russia

Exceeding Saudi Arabia in volumes of crude oil exported, Russia has been quietly expanding its energy empire. Gibson Shipbrokers reports

he Russian energy sector has always difficult-to-develop fields. It has also changed the second stage, the capacity is projected to attracted a lot of attention and the way it calculates crude and oil product reach 1 million b/d. Plans also exist to build a Tinternational publicity. This is not duties, making it easier to track changes in spur from the BTS-2 to feed crude to the Kirishi surprising, given that the Russian Federation international oil prices. In addition, it appears refinery on the Baltic. has the world’s largest gas reserves and the that Russia’s attitude towards foreign energy Another important pipeline development has seventh largest crude oil reserves. For most investment is becoming ‘warmer’, with the been in the eastern part of Russian territory. of this decade Russian oil and gas production government inviting international oil firms According to Transneft, the first stage of the was steadily increasing. In 2008 alone, Russia’s to participate in the development of Siberian East Siberia Pacific Ocean (ESPO) pipeline oil and gas production was estimated at more fields. from Taishet in East Siberia to Skovorodino was than a billion tonnes of oil equivalent or around As a result, the country’s crude output has scheduled to go into operation by the end of 15 per cent of the world’s total (Source: BP started to pick up again. In recent months last year. Until the second stage of the project is Statistical Review). Russia surprised oil industry observers by completed in 2014-2015, around 600,000 b/d In terms of oil production, it appeared last ramping up its oil production to around 10.2 is expected to be pumped through the Taishet year that Russian crude output had peaked million b/d and overtaking Saudi Arabia. A - Skovorodino section of the ESPO pipeline. Of and was set for a permanent decline. After major boost to production was provided by this, 300,000 b/d will be delivered by rail to a nearly a decade of relentless growth in crude the start-up of the giant Vankor field in East new Kozmino port, on the Sea of Japan - close production from around 6 million b/d in the mid Siberia. The oilfield started pumping at an to Vladivostok. The remaining 300,000 b/d will to late 1990s up to 10.1 million b/d in 2007, initial rate of 130,000 b/d, and is expected be piped to China through the spur currently the country’s output in 2008 fell slightly to 10 to peak at 510,000 b/d in 2014. News of the under construction from the Skovorodino. Once million b/d. Declining output from maturing rebound in Russian crude production received the Skovorodino - Kozmino link is finished, the oilfields and restricted access for foreign oil very wide publicity; however, some other capacity is planned to reach 1.6 million b/d. companies to the Russian energy sector had important developments within the country did been predominantly blamed for the drop in total not attract as much attention. Stepping on the gas production. In addition, the Russian Federation is preparing Pipeline network major changes to the existing gas infrastructure. In from the cold Recently the Russian pipeline monopoly Feasibility studies on the Nord Stream project However, there were some other culprits. High Transneft announced that it has started started in 1997 with plans to develop a gas mineral extraction taxes and crude export construction of the Baltic Pipeline System pipeline running under the Baltic Sea from duties levied on oil companies, in combination expansion (BTS-2) - the oil pipeline that will Russia to north east Germany. The construction with plummeting international oil prices in the run from Yaroslavl (north of Moscow) to a of this project is expected to begin in the first second half of 2008 contributed to the decline new port at Ust-Luga on the Baltic Sea. The half of 2010. The costs are estimated at $7.4bn, and also led to the drop in drilling activity preliminary project costs are estimated at with scheduled completion in 2012. The pipeline needed to sustain production at current levels. around $4bn. The first stage of the project is will have a total capacity of 55 billion cubic The government has subsequently reacted expected to be completed by 2012, with initial metres per year. by announcing tax breaks in a number of throughput of 0.6 million b/d. After completing The Russian government also has plans to

20 Russian Crude Exports Million b/d (through Transneft Pipeline System and by Rail) Source: Argus Nefte Transport 4.5 Rail Pipeline 4.0

3.5

3.0

2.5

2.0 construct a South Stream gas pipeline that will 1.5 transport Russian gas under the Black Sea. Although this project is still in the planning/ assessment stage, some crucial details have 1.0 already been agreed. The pipeline is intended Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 08 08 08 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09 09 09 to cross Bulgaria, Serbia, Hungary, Greece, Austria and Italy. Current plans are for the pipeline to become operational by 2015, with the capacity of up to 63 billion cubic metres per year. Russian Crude Production Undoubtedly, these oil and gas infrastructure projects will reshape Russian energy export Million b/d 1995-2009 Source: IEA flows, enabling the country to diversify its 11.0 market outlets. The Nord Stream and South Stream pipelines will allow Russia not only to increase its gas supplies to Western Europe, 10.0 but also these will reduce the need to ship Russian gas through former Soviet countries. 9.0 In terms of the developing oil infrastructure, the opening up of the ESPO pipeline will lead 8.0 to a massive increase in Russian crude exports to Asian customers; with 300,000 b/d already 7.0 committed to China over the next 20 years. Similarly, the BTS-2 line will result in greater crude oil exports from the Baltic Sea, although 6.0 it will be challenging to fill the pipeline to its full capacity. Some additional crude may come 5.0 from Kazakhstan and some volumes may be redirected from non-Russian Black and Baltic 4.0 Sea ports. Another possibility is to divert crude from the Druzhba pipeline going directly into 3.0 Eastern Europe, although this is unlikely as the line is the only direct feed to a number of 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 central European refineries. Looking east and west Finally, if and when these oil infrastructure projects are completed, Russian crude pipeline 1 Existing Druzhba Pipeline capacity will greatly exceed its predicted export 2 BTS-2 volumes. Russian crude production is targeted 3 ESPO (1st Stage) to rise by 1 million b/d by 2030, while the 4 ESPO (2nd Stage) planned combined capacity of the ESPO and 5 Spur from ESPO into China Russia the BTS-2 pipelines is 2.6 million b/d. This 2 Yaroslavi 3 excess capacity will enable Russia to switch between its western and eastern export routes Samara Taishet Skovorodino Belarus 1 in order to maximise its profit margins. In 5 4 return, potentially changing and unpredictable Ukraine crude exports from Russian sea ports both in Kazakhstan Mongolia the Atlantic and Pacific basins could lead to Romania greater volatility in tanker markets. A potential China Kozmino opportunity and threat to the maritime Japan community. S.Korea

21 APRS - an industry accepted methodology

he Marlin oil field in the Gulf of Mexico of the liquids in the production tubing. Annulus is beautifully simple - a disk with a metal is a shining example of the successful pressure differentials between the casing membrane (the size of a US Quarter or UK ten Tdevelopment of deep offshore reserves and components increased until the point where pence piece) finely engineered to burst within a jewel in BP’s illustrious crown. But just how failure was inevitable resulting in catastrophic a 2 per cent tolerance (or 50psi) of its preset close that half a billion dollar project came to tubular collapse. parameters. These can be set to rupture either ruin, shortly after production started in 1999, The cost of such a failure afforded the outwards or inwards to equalise the pressure is now a history lesson that continues to inform development of several technologies including a differential in the tubing annulus. Assembled the industry. vacuum tubing used at Marlin - to contain the and sealed in a small disk that protects it heat as a thermos flask might - with inevitable from damage or premature rupture in general A tough lesson additions to cost and complexity for such a movement, these are typically set in pairs What happened at Marlin was the result of project. It is only comparatively recently that in easily deployed industry standard tubular pushing production technology to the extremes a low cost, simple and effective remedy has subsections. of the operating envelope. With the production been made available by Hunting; this has casing set in the well bore on what was BP’s quickly been adopted as the accepted industry It is so simple most expensive investment at that time, the methodology for mitigation techniques against APRS is now used in most deepwater fields expectation was that the taps could be turned the collapse of OCTG due to annular pressure around the world. While it has shown itself to on and payback commence from a gigantic build up. be incredibly effective, especially in comparison flow rate of 40,000 barrels per day of oil with to the alternative technologies that are associated natural gas production of 250 It looks so simple available, it is the comparative cost which million cubic feet per day. And this is just what The Hunting Annular Pressure Relief System has given virtually all the major international happened - but unfortunately with disastrous (APRS) was devised by John Staudt at the operators, the insurance they require at a consequences. As production rose, so did initial behest of ExxonMobil and developed highly desirable and affordable premium. the temperature in the casing caused by a further to meet the needs of different, or a combination of flow rate and the temperature variety of, operating environments. Its design

22 Saki season On the eve of Offshore Europe, Hunting’s Aberdeen facility hosted its fifth Scottish and Japanese themed party

Nagatsuka San (Marubeni Itochu), Richard Hunting and Kabatani San (JFE)

Sam McClements in ebullient form

Sam McClements, Richard Hunting and Joe Kitney visit the Hunting Offshore Europe stand

elebrating nearly 30 years of strong complete with technical and deployment Hunting’s Japanese connection began in 1980 business and social ties with its Japanese information. Features include Hunting’s new, with the joint development of the FOX premium Cpartners, Hunting held its now traditional lightweight pressure control product line and threaded connection for oilfield tubulars. In Scottish/Japanese themed party as the energy the highly successful VariBall™ deployment addition to being an equity shareholder, Marubeni industry poured into Aberdeen for the biennial system for deviated wells. Itochu undertakes the traditional Japanese Offshore Europe last September. Timed to coincide with Europe’s biggest trading house role, providing liaison and financing Hunting was one of 1,500 companies upstream oil and gas event, Hunting’s evening for to facilitate pipe supply from Japan. exhibiting at the Offshore Europe conference customers and staff was held at the magnificent As guests arrived they were asked to don and exhibition, which attracted more than Aberdeen Art Gallery. The venue was filled colourful Japanese ‘happy coats’ - blue for 49,000 attendees including leading energy to capacity, and all were able to enjoy some gentlemen and red ones for ladies. Already industry and political figures from around Japanese-style hospitality, entertainment and fine in the Japanese spirit, the Kagami Wari was the world. Hunting chose to exhibit to Scottish fayre including venison and haggis. then announced - the age old ceremonial further promote its expanding range of well Hunting’s Japanese partners - JFE Steel for breaking the seal on a barrel of Japan’s intervention and pressure control equipment by and Marubeni Itochu Tubulars Europe - were signature drink, saki. Served in wooden cups, launching a new interactive product directory. represented by a delegation including Mr known as masu, the saki had been specially In spite of chastened economic times this was Kabatani San, Morioka San and Nagatsuka imported from Japan for the evening. Guests welcomed as indeed were the record number of San. JFE Steel, the world’s largest 13 per were then treated to the sights and sounds visitors. The directory, available both online and cent chrome tubing manufacturer utilises the of the taiko - a traditional and highly skilful in CDRom format, provides a comprehensive Hunting Clear-Run Advanced Tubular System Japanese drum display, performed by a local listing of Hunting’s well intervention products, to complement its threadform technology. group of artists.

23 Fordoun’s transformation continues...

his year Hunting’s Fordoun facility near of services is available to both new and existing cost penalties for customers. Full restocking Aberdeen enters the next chapter in its customers. One of the prime benefits of this is privileges for unused material ensure that Tmulti-million pound site redevelopment. the integrated services portfolio that Hunting they are removed from billed inventory - again The yard has remained open for business and can offer at Fordoun, which reduces customer lowering their overall costs. operational throughout all the changes. So far costs as there is no need to subcontract OCTG The types of new services that can now be these have included the purchase of additional services to several vendors. Owning all the cost provided are illustrated by a three year external land and the development of new concrete hard drivers creates savings both in layered profit storage agreement with Venture Production standing, to replace the old runway. At the margins for each supplier, but also through plc. Supplementing its existing tubular contract same time the old tubular storage areas have simplified administration associated with with Hunting, 12.5 acres of demarcated space been transformed, making them easier, more managing one contract instead of several. is provided with office, warehousing and efficient and raising them to a similar standard Each stage of an operation has been Venture’s own vehicle access point. As Dave to the newly built area. The site now has an considered to ensure that maximum efficiency Walker, Material and Logistics Manager for OCTG storage capacity of 10 acres comprising is being provided. For example rig prepped Hunting at Fordoun, says: ‘This new agreement 162 x 50ft storage racks. Phase one will material can be slung as soon as it is completed has allowed Hunting to diversify away from conclude with the completion of a new building and, with the inspection area focusing solely on casing and tubing handling and move into complex, providing office accommodation and rig returns, stock turnaround time is reduced as a variety of equipment management.’ His staff welfare facilities scheduled for formal undamaged backloaded pipe is quickly returned counterpart at Venture, Stan Beaton, adds: ‘We opening in early spring. Phase two begins to stock and made immediately available for the are delighted with the agreement and see it as this summer and will increase OCTG storage next shipment. an opportunity to work in conjunction with one with an additional 180 x 50ft racks, creating The refurbishment of Fordoun means that another, rather than one working for the other.’ a supplemental equipment laydown area of 13 Hunting can respond efficiently to immediate It allows the benefits of a world class storage acres. and unforeseen operational needs such as last facility to be maximised with onsite craneage The redevelopment means an expanded range minute variations in well design, thus mitigating and transport links.

24 ...as work starts at Conroe

mbitions to grow Hunting Energy’s were environmental: storm water pollution Drilling Tools operations in the USA prevention and control was addressed with the Ahave been given a boost. The company installation of a site drainage system to manage is enlarging its geographical footprint with storm water runoff. The image shows this phase the latest step towards the Gulf of Mexico as of construction. well as Barnett, Eagle Ford, Haynesville and The location is close to arterial routes for the Fayetteville shale formations. A brand new shale plays north and east of Texas as well as customised mud motor facility is being built for transport links for the offshore industry via at Conroe in Montgomery County, just north Corpus Christi and the energy hub of Houston. of Houston Texas. This will complement the The facility will comprise new offices and a existing rental and service centres in Casper warehouse under 36,000sq ft of roofline on a Wyoming, Oklahoma City and Grand Junction stabilised yard. The new facility will be in good Colorado. The localisation of services continues company with an established cluster of energy to drive down costs, especially transportation, service companies in Conroe and a proactive and allows for a timelier response to the business community. It will equally benefit from operator. As well as core mud motor activities, a skilled and experienced local workforce. the Conroe base will enable the packaging or provision of associated Hunting drilling tools and services specific to local geology and needs. Ground was broken in November 2009, shortly after the purchase of the 10 acre site had been completed in October. First priorities

25 Our Hunting Community

These pages are for news and events within our family of companies. We’d like to hear more from you. Please e-mail any news items to [email protected]

Appointment of Non Executive Directors Hunting has two new Non Executive Directors. John Nicholas (pictured left) and John Hofmeister were appointed at a Board Meeting on August 26, 2009. John Nicholas, aged 53, is a British citizen and Fellow of the Association of Chartered Certified Accountants. Formerly the Group Finance Director at Tate & Lyle and Kidde, he is currently also a Non Executive director of Ceres Power Holdings and Rotork and is also a member of the Financial Reporting Review Panel. John Hofmeister, who is 61, is a US citizen and lives in Houston. He is the founder and Chief Executive Officer of the Washington DC registered, not-for-profit charity Citizens for Affordable Energy and a non-executive director of Lufkin Industries Inc. Mr Hofmeister is also the former President of Shell Oil Company US and a former Group Director of in The Hague, Netherlands. The Board would like to thank Hector McFadyen, who retired in September after being an Independent Non Executive Director since 2002, for his valuable contribution It’s a century! to the company and wishes him well for the future. Ivor Hill, aged 53, who has worked for Hunting Energy Services since 1998, clocked up a century in terms of giving blood to the UK’s National Blood Service last year. Having donated his first pint in December 1974, Ivor is motivated by the thought that someone he knows may one day need a blood transfusion, so he is very willing to Pensions changes help out when the National Blood Service mobile blood unit arrives in Portlethen. At a Peter Ergis, Hunting’s Group Pensions Manager, retired from his role on ceremony attended by the Lord Provost on October 27 last year, Ivor was presented September 30, 2009 after nearly 20 years with the company. We are delighted with his 100th donation certificate and awarded a silver bowl and 100th pint pin. that he will continue to be a Trustee and adviser to the company. Peter joined Hunting in February 1990 and has made a significant contribution to the management and development of the company’s pension schemes. We should like to thank him for all his efforts and achievements over the years, while Finn Trophy wishing him a long and enjoyable retirement. He is succeeded by Peter Gee, who joined the Pensions Office in November For the past 48 years the , Lloyds of London and the Baltic 1991, becoming Pensions Administration Manager and more recently, Deputy Exchange have competed against each other in a yacht race which takes place in the Group Pensions Manager. Solent and is hosted by the Island Sailing Club. In 2009 the Baltic Exchange sailed to victory with the help of MD Nigel Richardson’s yacht, Blue Max, and was awarded the magnificent silver Finn Trophy. The race proved to be an exciting one, with the previously unrehearsed eight- Welcome Welltonic strong team battling fatigue in the first half before pulling together to clinch a win in the second leg. All traces of exhaustion were however extinguished by a sumptuous Just before Christmas Hunting acquired the Welltonic Group of Companies a leading reception and dinner hosted by the Royal Yacht Squadron. provider of well intervention services for £9m. The Blue Max team consisted of: Nigel Richardson; Tom Podbury (Gibson); Jo Founded in 2001, Welltonic employs around 45 personnel globally with facilities in Simmonds (Gibson); Tom Dyke (Conoco); Jenny Deyes (Tokyo Marine); Tim Trober the UK, Middle East and Asia. The company specialises in developing and producing (Komrowski); Dilek Korukmez (James Fisher) and Servane Lesegretain (Total). The a wide range of downhole tools to support well intervention projects. Its in-house Gibson sailors would like to extend their gratitude to all involved in the management of engineering and design group will encourage further growth and development of this historic race and are already looking forward to participating in next year’s race. Welltonic’s product portfolio through established facilities in Aberdeen, Dubai and Singapore. The acquisition complements Hunting’s existing well intervention wireline operations and strengthens the company’s global geographical presence in this important growth market. CEO, Dennis Proctor, said: ‘This acquisition is another bolt-on transaction which strengthens our international presence while providing increased exposure to the high margin well intervention market. Welltonic complements our existing activities in what management and wider market commentators believe to be a high growth sector.’ Bon Voyage! Hunting announced the sale of its French operations to FINERGY on 22 December 2009 for a total consideration of £11.0m. The new owners formed a company for that purpose which includes the management team of Hugues Boussion and Pascal Morel. Having joined the Hunting Group in 1938, the company had evolved as a crude oil brokerage and product storage company after WWII to eventually become a holding company for the related businesses of Interpec, Larco, Setmat and Roforge. The team in France has remained staunch friends through respective generations of Hunting management and best wishes are expressed for their continued success as an independent concern.

26 Boat naming A new boat that will be used to educate and train both school groups and adults in protecting the marine environment was unveiled by Richard Hunting, Chairman of Hunting PLC, in a naming ceremony at Stonehaven’s Harbour Festival in September last year. The acquisition of the vessel - a long running project organised by the Maritime Rescue Institute (MRI) - was made possible by grants from both the Big Lottery Fund and Hunting, which provided the remaining funding of £6,000. In gratitude for the donation the boat has been named Richard Hunting. The MRI is a registered Scottish charity which provides a 24 hour waterborne search and rescue (SAR) response service for the Kincardineshire Coast. In addition to this the MRI works to advise, train and raise awareness of emergency SAR procedures around the world. The ‘Richard Hunting’ will be dedicated to the MRI’s youth groups, providing key support to its growing education work and maritime courses.

‘In the Pink’ day Newcomers’ reception At the end of October last year, Hunting celebrated ‘In the Pink’ day raising both recognition and much needed funds for Breast Cancer Awareness. Members of staff Hosted by Gibson Shipbrokers’ Managing Director, Nigel Richardson, last year’s based at the Badentoy facility were encouraged to come into work wearing either an newcomer’s reception was held at the Royal Ocean Racing Club - the home of offshore item of pink or fancy dress as the day was just before Halloween. yacht racing. The event, which was the third of its kind, is seen as an opportunity for In addition to dressing in pink a number of fundraising activities were held including new employees to both meet and socialise with their immediate colleagues as well as a cake and toffee sale and an air hockey competition, plus ‘Guess the Number of those from other broking and support departments. Sweets in the Jar’ and the date of birth of Buttons the monkey. Gibson is pleased to have welcomed 15 new employees over the last year, adding to the company’s 140-strong work force. Addressing the audience, Nigel explained how vital Gibson’s longstanding ties with Hunting were to the 116-year-old company’s road to success. Going on to describe Gibson’s plans for the future, Nigel outlined his key objectives as being ‘to expand our market share while establishing a foothold in Well Intervention catalogue selected new markets’. This, he explained, ‘will be achieved by both organic growth and acquisition on a global basis’. He added that, through hard work and dedication, Hunting is pleased to announce that the second edition of the Wireline and Equipment newcomers have a great opportunity to be part of Gibson’s success. Catalogue has been published. Although relatively new to the market, the company has been building its Wireline Equipment portfolio for several years - and this has been accelerated since the acquisition of Cromar in 2005. Along with Hunting’s established range of Slickline Tools and Cromar’s well known Pressure Control Equipment, new and innovative products are developing rapidly, including: the VariBall Roller System; EziLoad Stuffing Box; and CPT Heavy Duty Pulling Tool, which all feature within the catalogue.

Hunting Art Prizes 2010 jurors announced Three distinguished members of America’s national arts community have agreed to serve on the jury for the 2010 Hunting Art Prize. They are: Sarah Cash, Bechhoefer Curator of American Art at the Corcoran Gallery of Art in Washington D.C.; Rita Aida Gonzalez, Assistant Curator of Contemporary Art at the Los Angeles County Museum of Art; and Lorelei Stewart, Director of Gallery 400 at the University of Illinois. This panel will select both the finalists and winner during a two-tiered judging process which begins in January. The $50,000 Hunting Art Prize, which celebrates its 30th anniversary this year, is the largest award in North America for painting and drawing. The deadline for entries closed at the end of November last year and the winner will be announced at a gala event in Houston on May 1.

27 Hunting PLC 3 Cockspur Street, London SW1Y 5BQ, United Kingdom Tel +44 (0) 20 7321 0123 Fax +44 (0) 20 7839 2072 www.hunting.plc.uk

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

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

Hunting Energy (Europe) Badentoy Avenue, Badentoy Park, Porthlethen, Aberdeen AB12 4YB Tel +44 (0) 1224 787000 Fax +44 (0) 1224 787100 www.hunting-intl.com

Hunting Energy (Asia) 34 Benoi Road, Singapore 629901, Singapore Tel +65 (0) 686 16176 Fax +65 (0) 686 15010 www.hunting-intl.com

Gibson Shipbrokers 16 Ely Place, London EC1P 1HP, United Kingdom Tel +44 (0) 20 7667 1000 Fax +44 (0) 20 7430 0571 www.eagibson.co.uk

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