Assets Share

The recent fall of oil prices led to an increased pressure on services sector from a pricing point of view. In today’s environment, a new way of doing business is paramount. Service companies are in dire need to reduce their operating cost, avoid CAPEX, increase operations efficiencies while maintaining superior Service Quality and proficiencies. It is easier said than done in today’s challenging environment. Situation In the past few years and with the sudden drop in activity levels; Service Companies realized that they are investing a huge amount on non-revenue generating activities; i.e. non-core business to complement their offering to the market. Non-Core costs are acquired by owning equipment and maintaining the same; equipment such as an inventory of Coiled Tubing Strings that supersedes a number of active units, Work Reels for different strings sizes, Pressure Control Equipment, N2 Tanks, Frac Tanks, Acid Tankers, Downhole tools on standby, C-Pumps, Generators, etc. All the above-listed equipment requires maintenance and certifications up keeping to ensure integrity at well-site. Additional costs are booked where none of the above is creating core revenue. Cost, in this case, is taken on a monthly basis and regardless of activity level. Solution All Service Companies are holding inventory to cover their needs. All inventory pooled supersedes the actual needs of country activity level. The solution takes over the inventory of all companies, manage the certifications & documentation process and offer on a rental basis to all. None of the equipment is company specific technology but common equipment that would balance the cost by eliminating the monthly occurrence by becoming a variable cost depending on activity level. Rent when you need only. In order for the model to work; partnering up with Service Companies, their vendors, and manufactures is key to offer best in the industry rental solutions.