NXG Drilling Services has invested more than US$2.61 million (£2 million) in two new operations to cope with increased demand for its tools and equipment solutions.
The business, launched at the start of 2017, has moved from its Aberdeen city centre offices to 30,000sq ft premises at Altens Industrial Estate in Aberdeen. This adds to the existing operations that NXG has already set up in Holland and the Middle East.
NXG has also agreed a lease on a three-acre site for a welding, machine shop and "make-and-break" facility within the IOS Longside Supply Base, near Peterhead, north of Aberdeen.
The investment follows the acquisition of tools and equipment from Hunting Equipment Management Services (HEMS) earlier this year. NXG says it now has contracts in place with all the major service companies and, as a result, operates in more than 50 countries. The company is on track to record turnover of £4 million by the end of the year.
The firm currently employs 15 people but is looking to add a further 18 before the end of the year, with most new recruits based at the Longside operation.
NXG Drilling Services supplies a range of bottom-hole assembly (BHA) equipment including stabilizers, subs, drill collars, hole openers and reamers. In addition, the business also has a large stock of non-magnetic tools.
The company has streamlined costs by partnering with in-country oil service firms, and introduced smarter logistics and innovative sales and rental models to respond to cost-conscious requirements in the drilling phase of exploration and production programs.
The firm also has a research and development arm, OILSCO Technologies, which can deliver a range of solutions for drilling operations.
Rod Coffey, former CEO at rental business Stable Services, then head of Key Energy Ventures, is CEO at NXG Drilling Services, said: “We’ve had a strong start to the year by delivering a model that is flexible, reliable and cost-effective to international oil service companies. Our streamlined approach is already paying dividends and our larger facilities give us the ability to expand our services.
“We have the in-house expertise to look beyond the North Sea, although I believe the local market will pick up before the end of the year. There is strong potential for growth due to our business model of working with trusted and established partners to offer additional services that complement their existing offering. It’s been extremely well received by the market.”
Mark Stephen, COO at NXG Drilling Services, said: “The launch of the business has gone extremely well. We’ve secured contracts across four continents and are looking to add more in the next few months. We certainly now have the capability and capacity to handle additional projects.
“We will be looking to add to the team in the coming months as we look to continue the development of the business.”
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