Closure Interview, Orlando Ramirez, CEO, Stockholm Precision Tools, SPT

Since its founding, in 1996, SPT has risen from start-up to a global supplier of downhole surveying tools. Tell our readers a little bit about the company and also your role within the organization?

Since founding SPT, Stockholm Precision Tools, in Sweden in 1996, as CEO, I have been in charge of daily operations and developing worldwide business for the company. My engineering background also allows me to focus on the companies R&D operations, ensuring we offer only the latest and most advanced tools on offer to the market.

SPT is a global leader in developing high end directional navigation measurement systems and our products are used by the largest oil, gas and mining companies in the world.

In our early years, we worked on the most important projects within the Swedish O&G and mining sector, before expanding across the globe to service today, customers based in over 35 countries, serviced from our offices in Argentina, Australia, Canada, Ecuador, Spain, Chile and not forgetting our regional offices and facilities in Russia.

At SPT we also understand the need for continued competitiveness, and the growth of the company, in today’s highly competitive oilfield services market, would not be possible without innovation and technical advantages. We have, therefore invested, and will continue to invest 25% of our revenues in research and technology improvement for our instrumentation, gyroscopes and microelectronics products range.

What product range do you offer in Russia and what are their applications within the regions vast and differing hydrocarbon reserves?

We offer state-of-the-art North Seeking Gyro solutions. Our downhole survey instruments are capable of surveying in Continuous Mode (non-stop) which means time and money saving. This technology is a “must have” for directional drilling, wellbore placement and downhole orientations. Its rugged construction and reliable data place SPT as a leading North Seeking Gyro provider.

Our presence in Moscow has rapidly developed from having a simple trade rep office into a fully staffed and highly trained center, building long-term relationships and strategies with our local customers.

We need to stress that our company’s policies are based on ensuring an individual approach to every client, considering their needs, and providing timely, high precision, reliable tools and top-quality service.

Providing all of the above is easier if you are based near your client, so we opened two SPT branches in Moscow, a service center and a training center for our Russian and CIS customers. Here we provide round the clock maintenance service and equipment repair for all our clients. Additionally, their staff can also enroll for SPT training programs in order to maximize their knowledge and the use of new equipment.

Our branch also provides fast-track equipment delivery without wasting substantial amounts of time on customs clearance and other formalities.

Yet the success of Stockholm Precision Tools is based, above all, on the unique character of our products. Presently we are unveiling to the Russian market a high-tech continuous gyroscopic inclinometer GyroTracer Directional. The tool has been well received by our Russian clients, it’s technologically innovative and has several advantages over Russian and foreign gyro inclinometers; high precision and continuous recording under stress load conditions at up to 103 MPa pressure and temperatures up to 150 C, with optimal weight and size parameters. Additionally, it does not require pre-calibration and in-mouth orientation prior to the measurement.

We have received great feedback from our Russian clients to date. Recently, Bashneftegeofizika had great success using our GyroTracer Directional, noting that “No time wasting setting up the probe as only few minutes are required. There is no need for field calibrations and the operator only has to key in the latitude data; orientation operations are also very fast”.

With both local and international companies selling downhole gyro-surveying systems into the region, why should a drilling contractor or service company consider using SPT products
over another?

As high end manufacturers, we understand that everything begins with the selection of the materials and SPT only works with best in class suppliers. Our dedicated team of highly skilled engineers bring craftsmanship to technology and ensures our instruments are rugged, reliable and extremely accurate, as well as measuring in continuous  mode at speeds of up to 150m/min. Moreover we consider our customer´s operations as our own, and have round the clock, 24/7 Customer Support Services available for all our customers at any time.

I also mentioned in my answer to Q1, we invest 25% of the company’s revenues on pure R&D investments. This ensures our products are constantly at the forefront of technological advances and gives our customers the confidence that they are purchasing a premium product that ensures the most accurate results on the market. Within the downhole borehole measurement arena, you want to ensure the most accurate results possible as the smallest error in borehole placement could cost the asset owner millions in lost revenue.

What are the advantages of using a real gyro tool in comparison to a cheaper micro electro-mechanical systems (MEMS)?

To put it simply, results . . . clear, proven results!

MEMS Technology is an indirect method of measurement, which means that the operator needs to provide the starting azimuth to the equipment. This system is not capable of surveying by itself. Additionally this kind of technology usually needs to stop every 5 meters in order to extrapolate the previous data. This means that the liability on the survey data will be always the contractor.

SPT´s North Seeking Gyros eliminates the possibility of human error as the instrument measures the earth’s rate of rotation to determine its position.

Another very important factor is that the North Seeking Gyro will always find true north regardless of downhole magnetic interference that is often found in downhole environments (from casing, tools or naturally occurring magnetic conditions in the hole or formation). SPT´s North Seeking Gyro ensures accurate results that are not affected by these conditions, such as a MEMS system would.

 With the price of oil down and a fluctuating Ruble, how is business for SPT in Russia at the moment? 

Like many companies, SPT understands the current market conditions and of course, the price of oil affects most industry players. But at SPT, our products help our customers maximize their assets and that can mean huge time and cost savings in the initial stages of operations and of course, the potential for increase in asset yields in the long term is massive. We are talking many millions over the life of the asset itself.

So at SPT, during these turbulent times with regional uncertainties, our products are helping customers save time and money and more importantly increase long term revenues. This has ensured SPT products are a first choice for customers in Russia and has helped SPT to continue to expand its reach and customer base in
the region.

What recent success stories have you had in the region? 

Our products have been hugely successful and widely used at the kickoff of the side gussets and inclination in Western Siberia. Our company’s priority is now the opening of a service center in the Khanty-Mansiysk Autonomous Okrug (Khanty) region, which will also cover the Yamalo-Nenets Autonomous Okrug (YaNAO) area.

Additionally, our instruments actively and successfully operate in the Volga and Far East.

SPT products are not only trusted across the region, but have delivered the required results and benefits that our customer demand.

Are you currently working in Kazakhstan, Azerbaijan, or Turkmenistan? What expansion plans do you have for the Caspian region?

All of SPT´s regional operations are ran from our Moscow branch, with our technical teams experienced in business across all the former soviet countries. We are actively engaged in advanced discussions in both Kazakhstan and Azerbaijan and the Caspian region is certainly a key area of growth for SPT and we look forward to expanding our profile in these countries.

What is your forecast for SPT globally and also for the Russian market in the coming years?

Accurate wellbore placement and well orientation is hugely important and plays a key role in maximizing the profits of an asset. SPT´s state-of-the-art North Seeking Gyro is the most advanced and accurate tool on the market and our customers increasingly understand the huge benefits that SPT´s products offer, both short and long term. We will, as always, continue to invests heavily in R&D, work closely with our customers and partners and will continue to ensure that SPT surveying tools are the most advanced and accurate on the market.

The forecast for SPT both regionally and globally is very strong.