Technology for Kuwait’s mature oilfields

Kuwait

Musaed Alawadhi, general manager of NOV in Kuwait, talks to The Energy Year about the company's footprint in the global oilfield services landscape, its introduction of cutting-edge technologies to the Kuwaiti upstream segment and expectations for increased business in the next five years. NOV delivers technology-driven solutions to empower the energy industry.

What is NOV’s footprint in the global oilfield services landscape?
NOV operates in two segments: Energy Products and Services, which encompasses our shorter-cycle transactional businesses, and Energy Equipment, which includes our longer-cycle capital equipment businesses. With over 150 years of pioneering and deploying new technologies, we maintain a significant presence in drilling and production solutions. We continue to be a leading energy OEM and service provider globally, delivering innovative solutions across the industry.

Can you walk us through some milestones achieved by NOV in Kuwait and their impact on the country’s upstream segment?
As of early 2024, NOV has successfully qualified to provide KOC with managed pressure drilling (MPD) services, coring services, tubular inspection services, oil-based mud cutting treatment services and fibreglass pipe supply, among other services.
These pre-qualifications enable us to support KOC in their drilling and production operations by offering cutting-edge technologies and reliable, long-term partnerships. We supply the latest onshore and offshore drilling technologies and deliver performance drilling solutions to tackle challenges such as high-pressure, high-temperature (HPHT) wells.
Our iNOVaTHERM technology, used for oil-based mud cutting treatments, offers higher treatment capacity and reduced manpower compared to older technologies and thus provides significant value to KOC.

Can you share some details of other technologies NOV supplies and the benefits they bring to operators?
Our MPD product line offers sustainable solutions to help operators manage challenging drilling environments, enhancing safety and efficiency through integration with the drilling controls network. NOV’s acquisition of AF Global’s Advanced Drilling Systems business adds rotating control devices to our portfolio, completing the suite of equipment we offer to customers such as KOC.
We lead in drill pipe technology, exemplified by our H2Shield 135 MS, which was selected by KOC for complex HPHT wells. Additionally, our Delta connection improves performance and extends asset life, lowering the cost of ownership for drilling contractors and KOC.

Can you provide other examples of technologies that can help KOC overcome drilling challenges?
The NOV TUNDRA MAX automated mud chiller, used onshore and offshore, stabilises drilling fluid temperatures, reducing hole temperatures – a major challenge for KOC in deep drilling. This mobile, fully automated technology works even at high ambient temperatures without an external water source, enhancing performance and reducing costs.
Our Tuboscope internal coating, TK-340TC, complements the mud chiller by maintaining cooler components, improving hydraulic efficiency and protecting against corrosion. Together, they reduce downhole temperatures significantly. Furthermore, our wired drill pipe technology, part of NOV’s Downhole Broadband Solutions (DBS), provides real-time downhole data, enabling faster and safer drilling. DBS enables our customers to reduce well delivery times and increase production.

What is your assessment of the Kuwaiti upstream segment, and how is NOV positioning itself to capitalise on opportunities?
KOC’s drilling programme is highly active, with increased onshore and offshore activity expected soon. NOV supplies advanced drilling technologies and has developed solutions such as M/D Totco’s Kaizen, an intelligent drilling optimisation application that enhances the rate of penetration (ROP) and mechanical-specific energy through AI and continuous learning. While Kaizen has yet to be implemented by KOC, it has delivered major improvements in other markets.
Additionally, we successfully launched our PosiTrack tool, which is designed to reduce torsional vibrations and manage weight on bit for ROP improvement. NOV has worked closely with the Kuwait Direct Investment Promotion Authority (KDIPA) to develop Kuwaitis, ramp up in-country services and offer the latest technologies for operators, drilling contractors and service companies.

How does NOV remain competitive in Kuwait’s upstream segment?
NOV is expanding its in-country services by establishing a new facility in Ahmadi, set to open in Q4 2024. This 7,500-square-metre facility will provide sales, rentals, and services for several of NOV’s business units including Downhole Technologies, ReedHycalog, WellSite Services, Completion Tools, M/D Totco, Tuboscope and others.
We offer an extensive portfolio of best-in-class performing technologies including drilling and coiled tubing motors, agitators, drill bits, and our new Alpha shale shaker, which enhances borehole stability and reduces fluid loss. We also prioritise local talent, employing Kuwaiti nationals and supporting their development through training programmes and international exposure, aligning with KDIPA’s Kuwaitisation efforts.

How receptive are Kuwaiti operators and drillers to new technology?
Kuwait’s upstream segment, featuring mature fields, is highly capital intensive. Kuwait Petroleum Corporation [KPC] and its subsidiaries are focusing on increasing production while reducing costs per barrel, welcoming innovative solutions for ageing fields.
KOC management actively promotes the adoption of new technologies, not just to increase output to 4 million bopd, but to maintain it steadily. Exciting initiatives are on the horizon, and we are optimistic about our role in helping KPC achieve its targets.

What is your assessment of the demand for drilling equipment and services, and how will its evolution in the next five years impact NOV’s position in the market?
Kuwait remains an important market for NOV, with a healthy demand for drilling services anticipated both onshore and offshore. This demand will drive the need for associated services, workover and maintenance, especially as KOC continues to drill hundreds of wells. We are excited to see an increase in activity with the recently awarded rig tenders, alongside a potential major increase in offshore activity.
Our team has been actively supporting the Kuwait offshore project, and we are expanding our fleet of drilling motors and tools to be well positioned to meet future demand.
Over the next five years, we expect increased direct involvement with operators in managed pressure drilling services, offshore projects, gas sweetening and water treatment, and we will leverage our technology, experience and resources to succeed. As we say, NOV powers the industry that powers the world.

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