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Deep Down Inc.
Texas-based Deep Down Inc has been playing a key role in consolidating service provision for the worldwide offshore oil and gas industry. Ben Sansom reports
ccording to the latest reports from Quest Offshore Resources (a leading provider of market intelligence for subsea, deepwater and marine construction sectors within the oil and gas industry), capital expenditure for subsea development worldwide is likely to undergo considerable growth between 2009 and 2014 and will ultimately reach an all time high of $81.1 billion. One company systematically expanding its product and service offering to meet the needs of this sector growth is Houston-based Deep Down Inc. Since its launch in 1997 the company has established its position as a trusted services and technological solutions provider for the offshore oil and gas exploration and production industry. Providing specialised management and engineering teams for deepwater subsea developments, and a wide range of specifically designed and manufactured products, the company operates around the globe for a portfolio of clients that include major oil companies such as Royal Dutch Schell, Exxon/Mobil, Chevron, BP, Anadarko, Marathon Oil, BHP, Amerada Hess, Helix, Subsea 7, Acergy, Aker Kvaerner and Cameron. With a considerable presence in the Gulf
Deep Down Inc.
PT Welding and Fabrication PTWF has fabricated a wide variety of work from 20â€™ seismic boat cable reels with level winding assemblies, turnkey mud systems for land based drilling, to ROV underwater stations for offshore. We are very proud of our work with Boeing for the space station on two nitrogen bottle transport systems fabricated out of aluminum. We are capable of many forms of fabrication from small one-off parts, sheet metal work, high pressure piping, ASME Code vessels, light to heavy structural steel fabrication. We also do large and small machining for our customers. We have always kept our customers interests in mind on all of our jobs to produce the best manufactured products possible.
of Mexico, the company has been expanding its global horizons, with a particular emphasis on the lucrative deepwater projects off the coasts of Brazil and Ghana. The past two and a half years has been a period of intense expansion for Deep Down. Intent on leveraging the record growth which is forecast for the next five years, the company has engaged in an aggressive acquisition strategy aimed at bringing under one roof a comprehensive portfolio of industry service providers, including designers and manufacturers of subsea, surface and offshore rig equipment in deepwater exploration and production of oil and gas worldwide. Today, the company operates through four business units: Deep Down Inc, Flotation Technologies, Deep Down Marine Technologies, and Mako Technologies. Among its early acquisitions was ElectroWave USA, a company that brought with it the ability to manufacture advanced automation for the marine industry. The acquisition of Mako Technologies, which operates today as a subsidiary, gave the company the capacity to manufacture remotely operated vehicles (ROVs) along with ROV tooling and crews, and offshore equipment rentals. Meanwhile, the addition of Flotation Technologies, another separate business unit within the Deep Down portfolio, adds the
capacity to develop and manufacture specialised offshore flotation technology such as drill riser buoyancy and other marine flotation solutions. The acquisition strategy has continued through 2010, with the announcement on 3 May that the company had entered into a conditional purchase agreement to acquire the Cuming Corporation for $48.25 million. A world leader in the design and manufacture of technologically advanced syntactic foam flotation products and insulation materials for the offshore oil and gas industry, Cuming has been enjoying record sales and an order backlog, and has recently quadrupled its production capacity in order to meet the huge demand for its products. The acquisition is expected to benefit both companies. Beyond expanding through acquisition, Deep Down also believes that innovation is key to success in such a highly technological and physically challenging operating environment. To maintain its position at the forefront of the market, the company is continuously improving and updating its service offering and its product portfolio, which includes custom engineered subsea distribution system hardware and drill raiser buoyancy solutions, offshore innovations such as loose-tube steel flying-leads, Morays, installation carousels, pipeline terminations, launch and retrieval systems (LARS), marine automation, monitoring and control systems. And where a development has proven to be an effective addition to the product portfolio and a recognised technological advancement, the product is protected with a patent. One such recent development is a new subsea umbilical-splicing technology which enables users to create flexible environmentally sealed joints or splices between two or more existing umbilicals, thereby quickly and efficiently achieving new configurations and reducing turnaround time on subsea operations. The product was successfully patented in the US in May this year. Another recent innovation is a drilling riser buoyancy module developed by the Flotation Technologies division and patented in December 2009, which incorporates a ToughSkin outer shell moulded from high strength polymer enabling it to withstand the rough handling that such modules usually receive both in storage and in service.
“There will undoubtedly be greate
Investment is also being rotational moulding facility designed rotational mould external shell. With expan being put to use on a range deepwater strategy as we The predicted increase and the company’s revenu disastrous oil spill in the G and Smith is expecting tha greater regulatory scrutiny of Mexico,” he said. Looking to the future, t Deep Down to play a sig going forward as we co remains one of the best to supply services and www.deepdowncorp.com
Deep Down Inc.
er regulatory scrutiny and higher costs associated with finding and developing hydrocarbon reserves in deep water, particularly in the Gulf of Mexico”
g made to increase manufacturing capacity in preparation for future growth. In September this year, a new 20,000 sq ft y was opened at the Flotation Technologies facility at Biddeford, Maine. This state of the art facility houses a custom ding machine that was originally engineered to manufacture the patented CoreTec drilling riser buoyancy module nsion capabilities to nearly 40,000 sq ft, and employing more than 25 workers at full capacity, the new facility is also e of products for Flotation Technologies. “We believe the rotational moulding technology will play a key role in our ultra apply this technology to applications beyond flotation buoyancy,” commented Ronald E Smith, CEO of Deep Down. in activity in the market place is already showing positive results for Deep Down, in spite of the global recession, ues for the second quarter of 2010 were 55 percent up on the revenues for the same quarter last year. Moreover, the Gulf of Mexico has resulted in increased spending on cleanup operations, subsea monitoring, inspection and safety, at the subsequent improvements in operational standards will continue to drive spending. “There will undoubtedly be y and higher costs associated with finding and developing hydrocarbon reserves in deep water, particularly in the Gulf
there are plenty of opportunities on the horizon, and the rapid expansion of the past three years has positioned gnificant role in the sector. “We believe that the international markets will be more important to our operations ontinue our focus on Brazil and West Africa deepwater projects,” Smith commented. “The deepwater market frontiers for adding large hydrocarbon reserves with high production flow rates. And we are well positioned products required to support safe offshore and deepwater projects of our customers,” he concluded.