Tenaris received a two-year contract extension by Pioneer Natural Resources to continue supplying the oil and gas producer with OCTG and Rig Direct® services.
The two companies are longtime business partners. For over 13 years, Tenaris has supported the Permian Basin shale driller with OCTG, and Pioneer served as one of the initial Rig Direct® customers. Tenaris and Pioneer executed its first Rig Direct® shipment in August 2015.
Tenaris complements its product offering with technical services, from string design and material selection to product development. Through the partnership with Pioneer and technical reviews, Tenaris collaboratively developed TenarisHydril Wedge 441™, a robust, fast to install, slim line, threaded and coupled connection, designed for Pioneer’s slim hole application.
“The engineering and operational collaborations with the development of the Wedge 441™ connection and RunReady™ services are positively impacting our operations and capital efficiencies,” said Larry Fizer, Vice President of Permian Drilling at Pioneer. “The Rig Direct® model has also been beneficial improving our drilling efficiencies. We look forward to embracing the additional technological advancements that Tenaris has to offer through our strategic partnership.”
Pioneer was an early adopter of Tenaris’s direct, mill-to-rig services model, Rig Direct®. The operator was also among the first oil and gas customers to use the company’s digital platform, Rig Direct® Portal, the backbone of Tenaris’s digital integration. Rig Direct® Portal simplifies pipe ordering, offers electronic tracking for shipments and deliveries, management of call outs and rig returns, and facilitiates quick invoice execution.
“Our value offer is customer driven,” said Afif Najjar, Tenaris Senior Commercial Director. “It is through our ongoing collaborations that we can advance our partnerships by developing effective solutions on the services side, product development and on an operational level to achieve greater precision in execution and gain efficiencies.”
Under the contract extension, Tenaris is enhancing its digital integration with Pioneer through direct systems communications between both companies. The automation of purchase order generation, order acceptance and back-up documentation will optimize these administrative processes.
Tenaris will also perform RunReady™ services with Pioneer, preparing pipes at the origin mill and delivering material to the customer’s well site, prepped and ready to be run downhole. The service improves safety, reduces costs, and improves quality with as the product requires no additional services before entering the well.