BTA chooses Rig Direct® in the Permian Basin

Basin


Field Type

Onshore

Location

Permian Basin, Texas, USA.

BTA Oil Producers awarded Tenaris with production casing business, after an initial presentation of technology solutions.

Summary

BTA Oil Producers is an independent exploration and production company that currently operates in the Permian Basin, drilling approximately 20 wells per year. Looking for answers to some technical questions, the company reached out to Tenaris’s technical sales representatives at the new Midland service center.

During a presentation about the advantages of the TenarisXP® Buttress connection, Tenaris also introduced Rig Direct®, a service model that integrates the supply of pipes and accessories from the mill to the rig, focusing on process and operational efficiency. BTA has been using the traditional distribution model for its supply of casing, however, after learning about the full range of technical and logistics services associated with Rig Direct®, BTA decided to give Tenaris a try for its production casing needs with TenarisXP® Buttress connections. These solutions increased operational efficiency and reduced risk.

Challenges

A technical quiz

BTA was curious about hydrogen embrittlement and sulfide stress cracking (SSC), a common problem in the Permian Basin, which often results in production casing failures. The operator requested a meeting with Tenaris’s technical sales team to discuss the issue and learn more about the company’s wide range of products and services.

Solutions

Rig Direct® in the Permian

With Rig Direct®, Tenaris works side-by-side with customers from string design to technical assistance at the well site, as part of a single package. This allows Tenaris to deliver more value to operators, who can benefit from Tenaris’s knowledge and expertise. In addition, through this direct contact, Tenaris can offer better solutions, customized to meet the needs of each customer, and oil and gas companies receive the products directly from the manufacturer.

Customized product solutions

Tenaris has a team of technical experts that are able to provide technical consulting services to find solutions to operators’ most demanding challenges. After discussing typical problems operators have seen in the Permian Basin, the Tenaris technical sales representatives were able to recommend several specific solutions to meet the operator’s needs.

These solutions included the TenarisXP® Buttress connection, a semi-premium, Buttress compatible connection with a special shouldered coupling design, offering high torque, compression resistance, greater make-up stability and reduced hoop stress compared to standard Buttress connections. Tenaris also offered to further reduce the risk of SSC by providing mild sour service couplings and increasing their outside diameter. Presented with this combined set of solutions, BTA chose a customized option, allowing their extended laterals to be cased reliably, minimizing the chances of SCC-related failures.

Reducing Total Cost of Ownership

In addition to the technical consulting services, Tenaris’s pipe management was also attractive to BTA. Through the Rig Direct® model, Tenaris dispatches pipes directly from the mill to BTA’s operations, utilizing its strategically located service center in Midland, Texas.

Tenaris’s unique ability to manage demand and forecast future wells using DemandSync™ was another service that was attractive to BTA. With only the string design and drilling schedule, Tenaris can ensure that material is reserved at the Midland service center to cover all of the customer’s drilling needs. This service provides independent operators like BTA with peace of mind and saves time for their drilling group by reducing the time spent on the pipe procurement process

Tenaris also provides net invoicing, allowing customers to only pay for the casing run-in-hole. This makes operations more cost effective, as Tenaris handles every aspect of rig returns. After the rig returns are received, Tenaris issues one invoice for the package of services provided. Traditionally, each individual service is billed individually by different providers, which creates many different invoices for the operator’s accounting team. With Rig Direct®, all services are included on one bill, saving administrative time and simplifying the payment process.

From the mill to the well

From the Midland service center, Tenaris performs inventory management, including trucking and contracting forklifts to unload trucks at the rig site. Tenaris has also implemented a pipe-by-pipe digital identification system called PipeTracer™. With this system, the service center can keep track of inventory and update pipe status and service conditions. Through the PipeTracer™ app, customers can receive customized and updated pipe data, doing away with the need for manual tally and status reports thus reducing potential errors.

Tenaris manages this service center the same way it manages the rest of its operations worldwide – through a single, global, ISO 9001-certified quality management system. Therefore, operators can depend on the correct, high quality material being delivered on time to the rig site.

Not only did Tenaris assist with a complete pipe management package, but also as part of Rig Direct®, a team of certified field service specialists was on site to ensure the correct practices were followed and the products were properly installed and used.

Results

A bright future for Rig Direct™

With Rig Direct™ Tenaris dispatches more than 100 million feet of OCTG per year from regional yards directly to customers’ rig sites around the world. The new service center in Midland is strategically located in the heart of the Permian Basin and uses state-of-the-art technology to make customers’ operations more cost effective and efficient.

Although initially interested in technical consulting services, BTA Oil Producers saw the potential value in utilizing this service model. By integrating the supply of pipes and accessories from the mill to the rig, leveraging a single QHSE management system, Tenaris was able to minimize the risk of failures, ensure zero non-productive time and provide BTA with a sound peace of mind. BTA and Tenaris continue working together to look for ways to optimize the independent oil company’s operations.

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