General - 7th August 2018
NXG Drilling Services has invested more than £2m in two new operations to cope with increased demand for its tools and equipment solutions.
The business, launched at the start of 2017, has moved from its city centre offices to 30,000sq ft premises at Altens Industrial Estate in Aberdeen, United Kingdom. This is an addition to the operation that NXG has already set up in the Middle East.
NXG has also agreed a lease on a three-acre site for a welding, machine shop and ‘make-and-break’ facility within the IOS Longside Supply Base, near Peterhead, United Kingdom.
The investment follows the acquisition of tools and equipment from Hunting Equipment Management Services (HEMS) Ltd earlier this year. NXG now has contracts in place with major service companies and, as a result, operates in more than 50 countries.
NXG has streamlined costs by partnering with in-country oil service firms, and introduced smarter logistics and innovative sales and rental models to respond to cost-conscious requirements in the drilling phase of exploration and production programmes.
Rod Coffey, CEO at NXG, said:
“We’ve had a strong start to the year by delivering a model that is flexible, reliable and cost-effective to international oil service companies. Our streamlined approach is already paying dividends and our larger facilities give us the ability to expand our services.
“There is strong potential for growth due to our business model of working with trusted and established partners to offer additional services that complement their existing offering. It’s been extremely well received by the market.”
Mark Stephen, COO at NXG, said:
“The launch of the business has gone extremely well. We’ve secured contracts across four continents.”