TENSOR Drilling Technologies: Delivering Reliable Drilling and Formation Evaluation Products
The other dimension of customer collaboration is the company’s ability to offer commercial flexibility that allows customers to construct a tailored economic model for their operations. TENSOR offers products and solutions either as a direct buy, or through a broad range of hybrid options that include managed fleet services, long-term rentals, and lease-to-own options. “Our promise to market is at the core of our belief and our business justification,” says Mahmood. TENSOR has a substantial share of its active investments dedicated to system level reliability improvements, where some of these investments would soon be rolled out as commercial products in second half of 2020—e.g., a HTHP ruggedized pulser, rotary connectors, and firmware and software upgrades.
TENSOR follows stringent quality controls at every step of the manufacturing process, offer full traceability through detailed pre-delivery inspection reports, and back it up with a benchmark twelve month product warranty. Additionally, some of the key investments in new technologies and key products are focused at a state-of-the-art agnostic web-based surface system, and high-speed telemetry with an inherent emphasis on design-for-reliability principle. “Our aim is to bring the most reliable and accurate drilling and formation evaluation products to the market at an affordable cost,” mentions Mahmood. The ultimate beneficiary of these measures is predictable operating cost that allows our customers to plan their operations with confidence. In one such instance, TENSOR provided seamless integration of its LWD technology with an existing RSS technology which a major NOC in China rolled out across its entire global fleet. The customer’s continued trust in TENSOR is demonstrated by further projects which have seen the recent design of a bespoke logging system, adding further functionality to the customer’s fleet while maintaining Tensor’s promise to deliver low CAPEX and OPEX solutions. This collaborative and integrative approach to problem-solving enabled the customer to optimize fleet utilization without having to sacrifice existing assets while still delivering a solution that was considered operationally critical.
TENSOR aims to overcome competitive threats through a proactive product-market strategy. The company’s unique advantage is its strategic focus, ability to execute with speed and precision, global relationships, emphasis on customer enablement through localization, and the bench strength and bandwidth of technical support they can deliver locally anywhere in the world. “When you combine these factors with a network of strategic global collaborations, both technical and commercial, you have a formidable moat that is not easily imitable. I address technological differentiation lastly – it is important, but it is imitable and it’s not sustainable in the long run if you stop technology investments,” states Mahmood.
For the future, TENSOR is working towards becoming a trusted partner and as a first choice for customer’s operational needs.
Our aim is to bring the most reliable and accurate drilling and formation evaluation products to the market at an affordable cost
The future customer segmentation is broader and deeper, with a higher concentration of NOCs, and with a higher degree of vertical integration and local content. Geographically, TENSOR will continue to reinforce its presence in China, Russia, and West Africa, while creating a significant footprint in the Middle East in the short-term. On the technology front, TENSOR is actively collaborating with strategic partners to offer a seamless triple combo RSS BHA through the TENSOR platform— addressing an express customer need coming from several key growth markets internationally. Although 2020 can very well be described as a “Black Swan,” a number of trends were already well underway that only got accentuated and accelerated in the current crisis. TENSOR is well prepared to embrace these trends:
• Business economics: With intense pressure on cost controls and requirements for productivity improvement, it is becoming increasingly difficult for traditional service models to provide a sustainable or economically viable operation. The need for lower operating cost could never be greater; however, the vast majority of equipment in our space inherently carries a high operating cost. In contrast, TENSOR has diligently focused on reducing the operating cost of the equipment while improving equipment reliability, performance, and technical services—reducing the total cost of ownership for our customers and their end users.
• Vertical Integration: NOCs and some major independents are increasingly migrating to a services internalization model, reducing and ultimately eliminating the need for contracting services for well construction. The primary drivers for this shift are: cost, trade restrictions, supply chain assurance, and operational control. TENSOR plays a vital role in enabling customers to internalize directional drilling and logging-while-drilling services through a combination of technology, products, solutions, and competency assurance programs.
• Fleet Optimization: Customers need bespoke solutions that work for them, and they continue to demand exactly what they need—in contrast to accepting a set menu option. This helps minimize cost, optimize operations and fleet utilization. TENSOR, through its agnostic platform, offers seamless integration with third party technologies – thus enabling fleet optimization.
• Technology and Reliability: The conditions to which drilling equipment is exposed continues to get more extreme; high temperature, high pressure, high vibrations, high mud solids—to name a few, impact equipment performance and long-term reliability. This requires more robust design and packaging of the equipment to reduce non-productive time, while keeping manufacturing cost within reason. This is not an easy balance to strike. TENSOR has built on decades of operational experience to address all levels of the value chain to achieve equipment reliability while still lowering both CAPEX and OPEX.