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Analysis

Bringing Local Service to Drilling Contractors

Wed, 01/25/2012 - 16:28

“You will not find many oil tool manufacturers in Mexico,” says José Olarte Villamizar, General Manager of Legotec. “Most of the bottomhole assemblies and directional drilling tools used in the country today come from the US, China or India. Legotec is trying to change this situation, and increase the confidence of international companies buying from Mexican manufacturers.”

Seeing the opportunity to bring local service to drilling contractors in Mexico, Olarte Villamizar established Legotec in 2000. After establishing a facility in Veracruz, the company got its first breakthrough contracts with Schlumberger and Precision Drilling, later acquired by Weatherford. As the business started to grow, Legotec approached Pemex and received a contract to refurbish the company’s drilling rigs at the Burgos basin. As Pemex awarded Legotec more contracts, the latter company built facilities at Villahermosa and Veracruz, in order to be closer to Mexico’s main fields.

The company’s main manufacturing facility is located in Reynosa. Olarte Villamizar explains that the need for a high quality product is twofold; first, Legotec needs to compete with US manufactured drilling tools that are fabricated to high manufacturing standards, and second because the quality requirements in the Mexican market are becoming increasingly stringent.

In order to comply with increasing safety and quality standards at their manufacturing facility, Legotec has obtained ISO 9001 – 2008, API Q1 / Spec 7.1 – 7.2 – RP 7.6, NOM (Mexican Offcial Standard), DS1 (TH HILL) and AWS (American Welding Society) certifications. The company has also focused on bringing top-quality manufacturing machinery to Mexico in order to fulfil complex orders and provide innovative manufacturing processes, including horizontal lathe machines by Gurutzpe, Warner & Swasey, Ward, Leblond, and American, a Haas-made CNC horizontal lathe, and lathes, boring machines, drills and milling machines from well-known international manufacturers.

Legotec has a collaborative partnership with a number of international oilfield service companies to manufacture their drilling tools for the Mexican market. Olarte Villamizar explains, “These companies are looking to invest in Mexico for the design and manufacture of new tools, based on their own patents. This is an extremely exciting opportunity for Legotec: being able to work side by side with companies like Schlumberger and Halliburton, and offering our engineering and design perspective to perfect their tools for use in the Mexican market. Our state-of-theart manufacturing facilities mean that we have all the tools we need to help them in this area.”

As well as working on these tailored projects, Legotec finds most of its work in the Reynosa manufacturing facility coming from the rehabilitation, maintenance and manufacturing of components for dierent parts of drilling rigs, including bottomhole assembly, rig floor / top drive and rotary rig / draw work, blowout preventer stacks, mudpumps, drilling fluid equipment and directional drilling tools. When talking about the increased safety requirements for these components, Olarte Villamizar oers the view that the single greatest factor driving this shift was the Deepwater Horizon incident of 2010. “What happened at Macondo changed the view of oilfield companies completely. Now companies are taking more care of regulations, API norms and all the other standards that apply to the oilfield. Although the Macondo blowout was caused by problems with the rig’s blowout preventer, safety requirements have increased for all parts of a rig.”