Oil states skagit smatco llc by East Coast Promotions

COMPANY PROFILE

2015

Oil States Skagit SMATCO LLC

www.osi-sales.oilstates.com | + 1 (713) 510 2382

One Source... Diversified Solutions Editorial: Harriet Pattison

Eyeing the market for expansion in the coming years, Oil States currently has four core business units – Skagit Mooring Systems, Nautilus Pedestal Cranes, Smatco Anchor Handling Winches and Custom Engineered Products. Today the Nautilus Marine Crane has become the industry standard on floating and fixed offshore applications for not only safety but reliability and lifting capacity for up to 500 tons. Total World Energy speaks to Alan Corley, International Commercial Manager, who explains Oil States’ plans for expanding into the Middle East and Brazil and what the company attributes its long running success to…

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Oil States Skagit SMATCO LLC Q: Tell us about the history of the company? When did the company start up? Who was responsible? This Company has a long history dating back almost 100 years. Skagit has been in business since the early 1900’s which started out manufacturing logging equipment. Smatco has been in business since the 1950’s before being purchased by OSI in 1997. Nautilus started out as a service company in 1983 and started manufacturing cranes in 1985. The parent company, Oil States Industries, has been in business almost 80 years so as you can see, we are well entrenched in the oil and gas industry.

Q: What is the company’s core business and main activities? What industry sectors are you predominantly focused on?

We have 4, core business units – Skagit Mooring Systems, Nautilus Pedestal Cranes, Smatco Anchor Handling Winches, and Custom Engineered Products such as SCR Pull-In Systems. At this time, we are 100% invested in the energy sector but have provided special equipment for industries outside for the oil and gas sector.

Q: Please elaborate on the company’s Nautilus® crane line - Why is it one of the most respected cranes within the marine sector? C u r r e n t l y, t h e r e a r e approximately 60 Nautilus designs that have been manufactured which include box boom, telescoping box boom, and lattice broom configurations. Nautilus Marine Cranes have become the standard on floating and fixed offshore applications for

s a f e t y, r e l i a b i l i t y a n d l i f t i n g capacity from 5 tons to 500 tons. With class-leading S l e w B e a r i n g Te c h n o l o g y, our cranes are recognized as some of the safest and best e n g i n e e r e d i n t h e i n d u s t r y.

Q: Are there any new designs or innovations you’re currently working on? Do you foresee new markets for Nautilus® cranes in the future? We are currently finalizing an update of our deepwater crane design. We expect to expand our installed base into both the Middle East and Brazil during the coming years.

Q: Would you consider the Skagit Mooring Systems and Smatco AHTS Winches your flagship products? Are these products distributed to global markets? Why are

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they integral to the company and to the industry? Ye s , t h e s e p r o d u c t s have been the cornerstone of our business and continue to be our core b u s i n e s s . Ye s , t h e y a r e distributed to global markets. These products are important to our business since the installed base provides opportunities for growth through both aftermarket service support and parts sales worldwide. With manufacturing and parts

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warehouse locations in Houma Louisiana, Rayong Thailand, and Mumbai India, we are poised to meet the worldwide d e m a n d s o f o u r i n d u s t r y.

“With class-leading Slew Bearing Technology, our cranes are recognized as some of the safest and best engineered in the industry”

Ye s , e q u i p p e d w i t h t h e very latest in engineering software and technologies, including 3D modelling, our degreed and licensed engineers bring depth of knowledge in statics, dynamics, machine element and thermodynamics to all projects. Engineering teams work onsite with production and manufacturing for a fully integrated approach.

Q: Do you regularly look to bring new products to the market place? In addition to the riser pull-in systems, what custom engineered products does the company have? Ye s , o u r w o r k r e f l e c t s o u r emphasis on continuous improvement, our company is structured to inspire innovation and new product development. We have developed custom lifting, pulling, mooring and testing solutions through the continuous improvement of our core products to custom applications.

Q: Is the company targeting local e x p a n s i o n ? I s t h e re scope for global expansion?

Oil States Skagit SMATCO LLC Over the years, we have expanded our main manufacturing facility in Houma, LA, USA to meet the changing requirements a n d s i z e o f t o d a y ’s equipment. We also recognize our customers are global and require us to manufacture and service t h e e q u i p m e n t l o c a l l y. I n order to do that, we have opened API 2C approved facilities in Mumbai, India and Rayong, Thailand to manufacture cranes and winches. We also have a service presence in Singapore and access to our distributors in Mexico and Nigeria. Oil States Industries is also in the process of building a new facility in Brazil which

“Since all of our products are custom built, we allow our customers the flexibility to ask for whatever they want or need and we’ll engineer and build it specifically to their needs”

will have the capacity to manufacture equipment from all divisions of OSI.

Q: What is the target for the business over the next 2-3 years? Our main focus will continue to be on the needs and requirements of our customers. C u s t o m e r s i n t o d a y ’s industry are very educated and demanding and with the market being so competitive, if we don’t take care of them, someone else will. As far as products are concerned, deep water and production appear to be the focus for our cranes and custom engineered products.

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Q: How would you position yourself in the market compared with the competition? Is there significant competition? T h e re i s s i g n i f i c a n t competition in the market so we try to distance ourselves other than price. Anyone can s e l l a c h e a p p ro d u c t , b u t t h e k e y i s t o p ro v i d e t h e c u s t o m e r a q u a l i t y p ro d u c t t h a t m e e t s their specifications for the intended job at a fair market price. That is what they expect and should be able to re c e i v e .

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“Oil States Industries is also in the process of building a new facility in Brazil which will have the capacity to manufacture equipment from all divisions of OSI”

Q: What are some of the key projects and contracts that the company has been involved with over the past few years? We have been involved in several key projects over the last several years. Atlantica’s tender fleet, Chevron’s Jack up & St. Malo FPU Fairleaders, Energy Drilling’s tender fleet, Heerema Installation SCR Pull-in System, Keppel FELS Mooring Systems, EXMAR’s FPU Mooring System, Gulfmark Anchor Handling W inches, cranes for Montco’s Liftboat fleet and cranes for CUEL, PTTEP, and TNS.

Oil States Skagit SMATCO LLC

Q: Is the constant drive towards ‘greener’ business having an impact (positively or negatively) on the business? OSI Skagit Smatco manufactures custom-engineered products so whatever our customers want, we provide. Although the winches and cranes aren’t usually a large part of a vessel or platform, over the years we have seen a switch to more electrical power which provides a green option. On the equipment which still require diesel engines, new emission requirements have changed the size of the power units due to certain efficiencies which increase costs.

Q: What has been the key to the company’s success over the years? There are a number of keys to our success but the two biggest items is our financial strength and engineering flexibility. We are part of a large, publicly traded company which allows us to provide financial flexibility to our customers. Since all of our products are custom built, we allow our customers the flexibility to ask for whatever they want or need and we’ll engineer and build it specifically to their needs

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