Where is NOV located today?

NOV is a global provider of high-quality equipment, technologies, and services to support the oil and gas industry. We are located in all major markets around the world, with 60,000 employees and $20 billion in annual sales. Recently, we separated our distribution services under an independent business, which has given us the opportunity to reorganize our core business. We have been in Mexico for decades. Our main business units are involved in the inspection and coating of tubular products, and the manufacture of drilling pipes and equipment. Our well services unit has also been in Mexico for years.

What areas are you focusing your research and development activities on?

In 2010, we opened a blowout prevention research center in Houston, Texas, which allows us to test BOP operations under a wide range of conditions. Shortly thereafter, we also opened a research center for drilling pipes in Houston.

What is your strategy for attracting and training more qualified personnel?

There is a significant shift in the personnel working in the industry. Many managers and engineers are reaching retirement age. A few years ago, we saw the need to invest heavily in the new generation. To that end, we have opened a dozen university programs worldwide to train workers in the most sophisticated equipment. We have initiatives with universities globally, such as the University of Texas, to offer training to our more experienced employees.

What manufacturing infrastructure do you have in Mexico?

Since the 1980s, we have been moving increasingly complex production activities to our facilities in Mexico. Mexico has performed fantastically as a manufacturing base for our drilling pipes, most of our couplings, and almost all of our iron roughnecks. These latter are sophisticated tools for handling pipes that incorporate robotic technology. NOV opened a state-of-the-art tubular coating facility in the Veracruz area, and we are also expanding our production of blowout prevention systems in Mexico.

What advantage does this presence bring them with respect to local content requirements?

We manufacture in Mexico because it makes economic sense. The country has a prepared workforce, a reasonable and stable tax regime, and movement across the border is straightforward. There are several countries in the world that are pushing for more local content through legislative requirements. In our opinion, it is better to facilitate the appropriate context for the development of local content, with an educated workforce and a stable tax and currency regime.

What opportunities do you see for NOV’s growth in the Mexican market?

NOV serves the Mexican market in various ways. A major self-elevating platform operator in Mexico has recognized the need to modernize its fleet in shallow waters. We are currently building several self-elevating platforms in shipyards around the world that will go to Mexico. We have also recently sold 10 fast-moving land platforms directly to Pemex, as well as a number of continuous coiled tubing units. On the other hand, for most deepwater platforms, NOV has provided equipment and technology packages. Another expansion project we are undertaking in the Villahermosa area is the installation of an after-sales center for platforms working in deep waters in Mexico. NOV has been globally investing in floating production systems for deepwater discoveries. We are currently bidding on an FPSO that will pave the way for a new model in the supply chain.

Can you give us more details about this model?

We want to offer the operator a comprehensive package of equipment for FPSOs and thereby reduce the number of suppliers they have to deal with. This reduces the risk of the vessel being delayed or incurring cost overruns, which unfortunately happens frequently. A few years ago, NOV achieved a similar goal by consolidating a more integrated package on production platforms.