John D. Lawrence
CEO
DTK Group
/
View from the Top

Complementing Core Analysis with Wellsite Services

Wed, 01/21/2015 - 09:15

Q: What are DTK Group’s latest ventures to expand its capabilities in the Mexican oil and gas industry?

A: While DTK’s geotechnical capabilities still lie in the core analysis division, our wellsite services division has gained prominence. Given that these two share a lot of common ground by being focused on geological studies, we are able to make use of both business lines to provide an even more specialized service. Core analysis is very focused on reservoir engineering, while petrophysics and flow studies are also becoming very important. Additionally, we are able to generate data needed to establish reserve volumes in a given field while also determining the optimum production methods given the reservoir’s characteristics. Our core analysis line is growing in unconventional reservoirs, as the pore flow studies we provide are very important when producing from shales. Nanopermeability, or extremely low permeability, is a characteristic aspect of hydrocarbonrich shales and is something that any company operating in these types of reservoirs will need to understand in order to successfully produce. Geochemical analysis, rock mechanics, and electrical properties are other important factors that we have been considering in unconventional reservoirs. Alongside this, DTK’s wellsite services work well when paired with core analysis since they allow us to analyze the geology while drilling operations are being carried out. At the same time, we are able to monitor drilling activities to guarantee efficiency and safety. While this line is inclined to work for the adequate use of certain drilling technologies, combining our drilling support services through our core analysis division with our wellsite services, we are able to offer integrated solutions that cover a large portion of the E&P processes of a field. We currently have mobile labs that work as the wells are being drilled in order to provide formation evaluation data during drilling operations. By providing first-hand information to our clients about the rock units that they are drilling into, we provide the tools for exploration geologists to better understand the subsurface. Additionally, this division also offers support services for drilling technology used at the wellsite, which essentially allows companies to monitor operations in real time. As drilling operations are monitored, anomalies and problems can be quickly detected. Gas detection is particularly important, given that toxic and flammable gases could potentially endanger the operation. This service line is already being used in onshore assets located in the South Region as well as in the North Region through two contracts with PEMEX, while we are also working with this service line in Colombia and Nigeria.

Q: What is the extent of DTK’s new drilling materials business line, and how are you planning to integrate the group’s three business lines to offer a well-rounded solution to your clients?

A: We have a small plant in Poza Rica that produces materials that we have developed in-house, which are experiencing significant demand by local drilling fluid companies. Besides producing, we also import materials from various places and distribute them to these companies. It is a relatively small business line for us when compared to the other two. In addition, this year has been slow because of PEMEX’s inactivity but we will see what happens over the coming year. There will definitely be good growth potential as soon as new companies come in and start exploring and developing fields. An advantage for us is that these three business lines share a lot of common ground, which puts us in a good position to offer integrated services. We also have partners who are world-renowned specialists in geochemistry, rock mechanics, and formation damage assessment, among other fields. Together, we are able to offer a complete geotechnical range of services to our clients. As I have said, there is plenty of potential for us to develop as new clients come along.

Q: How do you expect DTK Group’s activities to develop in the near future?

A: We have a core analysis contract across Mexico to provide our services in all PEMEX assets. This contract, which was awarded in November 2014 and began in December, will revolve around the exploration assets that were awarded to PEMEX in Round Zero. We will seek to obtain geological and petrophysical data in order to calculate reserves and define the best production techniques. Alongside this, our analyses will be useful in production wells where additional data is needed in order to optimize outputs. Given that new players will enter Mexico, we expect good business opportunities for our wellsite services to pop up. These services are essential for any company looking to operate in the country, but many companies will bring suppliers that have already provided these services to them elsewhere. However, our working experience in Mexico will be a defining factor for a company to choose our services over the competition. Furthermore, our experience with PEMEX will stand us in good stead. CNH has to compile and organize all geological data for the CNIH, which provides us with an opportunity to supply such data. Having worked with PEMEX for many years, we provided much of its data and we understand it far better than many other companies. There is a lot of potential for DTK to work directly with CNH by organizing, classifying, and converting data into formats that could be used by companies that are interested in producing from Mexico’s reservoirs.