HIGH ARCTIC ENERGY SERVICES

H IGH AR CT I C E NE R G Y S E R V I C E S

Driving innovative solutions in the world’s harshest environments www.haes.ca

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Differentiating

Delivery THROUGH

Following a successful decade of diversifying and problem-solving in the lucrative Papua New Guinean oil & gas domain, High Arctic Energy Services casts an eye towards future opportunities in neighbouring countries Writer: Matthew Staff • Project Manager: Eddie Clinton

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igh Arctic Energy Services has capitalised on one of the most prosperous oil & gas regions in the world over the past decade, not only introducing a trademark level of quality across its specialised oilfield services, but doing so in some of the most challenging and treacherous conditions tackled within the industry.

Papua New Guinea (PNG)’s doubleedged sword of lucrative market opportunity and almost unrivalled difficulty in actually carrying out operations has made it a niche area for operators willing to take on the challenge in recent years, and with the oil price crisis adding a further dimension of risk at present, the ability to differentiate and form a positive reputation has never been more vital.

This is exactly what High Arctic has achieved however, meeting its elite array of customers’ needs since 2006

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through a unique approach to problem solving, innovation and providing niche, value-added solutions.

Vice President of International Operations, Mike Maguire notes: “High Arctic is a Canadian, specialised oilfield services Company listed on the Toronto Stock Exchange. When the Company first expanded into new countries in 2003, we took the same technologies, processes and our expertise in snubbing and well control services in particular. Once we were established in PNG we quickly evolved our service offering to include drilling and the logistical support of remote drilling operations.

“With the operation in PNG, we have had to focus on applying technologies and processes to areas which are much harder to work in,” continues the President of International Operations, Darren Greer.

Despite the original foray into the wider international arena, Papua

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VOLANT Do more with less.

Volant delivers highly effective equipment and services to provide casing and liner solutions.

Our solutions are simple, affordable, and proven to do more in even the most challenging field conditions.

At our core, Volant is a technology company. We design and manufacture new equipment to make your work more productive, safer and easier. We do this through smart-design; it’s our commitment to Doing more with less.

Our ideas come from getting up close and personal with industry challenges; our success from applying the basics simply and effectively to deliver elegant solutions.

HAES’ newest drilling rig (115) set-up on a mountain in the Gulf Province of PNG

New Guinea alone now forms 90 percent of High Arctic’s operations, a business model which has been hugely successful as a result of the Company’s innovative approach and solutionsdriven culture.

“In Papua New Guinea we have specialist drilling rigs that operate like any other but are heli-portable,” Greer explains. “The locations we operate at sit on top of mountains with no road support, so whereas a regular land or onshore oil & gas rig breaks down into components in the 40-50 tonne range, ours breakdown into four tonne loads so we can still load and transport them underneath a helicopter between mountain tops.”

Maguire adds: “Our niche is working in places where the logistical terrain challenges make it really difficult to work and Papua New Guinea certainly falls into that category.

“Everywhere we work is

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disconnected from anywhere else we work, so what we’ve done in PNG is different to any other previous expansion, in that we’ve taken our specialist technical services but have then adapted them to overcome the challenges of a mountainous jungle environment.”

Platform to build from

Incepted in 1993, the Group’s initial success in Canada and other international markets led to the business looking for expansion opportunities around 2003, leading the business to Papua New Guinea’s shores.

Simply a strategic move to diversify its presence at first, the decision to move into the country turned out to be a masterstroke, as High Arctic found itself in a “real sweet spot” to achieve commercial growth and explore new, lucrative opportunities.

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Our equipment isn’t just smart; it’s tough enough to withstand even the harshest conditions. We offer robust technologies that are designed, tested and manufactured in-house and then proven where it matters – in the field.

The result: A full suite of products that earn their place as industry benchmarks.

Volant products are making a difference around the world – enhancing operations on six continents. We’ve gained this presence since 2001; the result of strong and stable relationships with satisfied customers. Our role is standing shoulder-to-shoulder with you to facilitate successful wells. This includes an emphasis on solutions before sales and relationships that exemplify service, quality and safety.

• We believe good customer service delivers solutions before sales.

• We believe good solutions maximize productivity and safety.

• We know our products and service facilitate successful wells.

Find out more at:

www.volantproducts.ca www.volantoiltoolsUS.com

Volant would like to say a big THANK YOU to all of our customers. In 10 short years, you’ve made the Volant Casing Running Tool the most widely used CRT in the world.

If you haven’t experienced the difference a Volant CRT can make, there has never been a better time to discover how we can help your company do more with less.

sales@volantproducts.ca volantproducts.ca | sales@volantoiltoolsUS.com volantoiltoolsUS.com Visit us at ADIPEC 2015, booth 3142.

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The first such opportunity came about in 2006 when the country’s largest oil & gas exploration and development Company, Oil Search approached High Arctic for workover services; a moment which set the tone for much of the latter’s progression ever since.

“Oil Search gave us a platform to build from and we have provided them with not just a drilling service or a solution to just drill holes, but service and support equipment to help facilitate on site logistics and stable all-weather drilling worksites,” Maguire recalls. “Since then, Oil Search has been a tremendously supportive client as our service has grown from a relatively small specialist offering to us being their drilling contractor in the country.”

Offering a much wider array of services in the process, this evolution has been the segway into numerous subsequent opportunities alongside major industry players, including ExxonMobil on its successful PNG LNG project, and consequently Interoil where High Arctic once again demonstrated its willingness to go the

Everywhere we work is disconnected from anywhere else we work, so what we’ve done in PNG is different to any other previous expansion” – Mike Maguire, Vice President of International Operations

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STAR SAFETY

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tar Safety is a leading supplier of personal protective equipment and rescue products to clients in the energy and resource sector throughout Asia Pacific/ Australia.

Specializing in custom designed high quality Flame Resistant and Insect Protection industrial workwear, Star Safety also provide a complete range of gas detection, working at heights safety equipment and hazardous substance spill control systems.

Our experienced specialists provide tailor-made solutions for clients facing the ongoing challenges of safety in the workplace.

Star Safety is proud to partner with High Arctic on their successful venture.

T +61 7 4634 8834 E sales@starsafety.com.au

www.starsafety.com.au

DRILLING TOOLS AUSTRALIA

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TA are Australia’s largest supplier of well control equipment. DTA have a quality network of global manufacturers including Integrated BOPs, Consolidated Pressure Control Accumulators, Sara Sae flow line products and American Manufacturing Pump Fluid End Expendables. Backed by many years of industry experience, DTA has strategically selected and designed quality API Certified & Monogrammed well control equipment with stock on the ground ensuring fast turn around and supply. DTA also deliver a well control training programme, run monthly through our joint venture with Lloyds Register Energy Drilling. DTA are Australia’s leading Authorised Pressure Control Repair & Service Centre for Asia Pacific fully equipped to repair and recertify well control equipment.

We’re proud to be a strategic partner of High Arctic Energy Services, delivering first class innovative pressure control solutions to the Asia Pacific region.

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INTRODUCING

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SUPERIOR PROTECTION AGAINST

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INSECT PROTECTION WORKWEAR FLAME RESISTANT WORKWEAR

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GAS DETECTION SYSTEMS SPILL CONTROL / HAZMAT HEIGHT SAFETY EQUIPMENT DUAL LANGUAGE SAFETY SIGNS

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WELL CONTROL SPECIALISTS

TEL: +617 3375 4388 DRILLINGTOOLS.COM.AU

Sara Sae

BRINGING MORE TO DRILLING

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Components are designed to be broken down into four tonne loads that can be transported by helicopter

extra mile in order to find the optimum solution in line with regional demands.

Greer continues: “It’s a small world and Papua New Guinea is an even smaller world. Good news travels fast and bad news travels really fast, so the last job is your reputation and that’s what we pride ourselves on.”

Maguire adds: “Due to the market slowdown, there are now several rigs sitting idle in Papua New Guinea and we like to think that the fact that we are very solutions-driven and focus on efficiencies and close collaboration with our customers is what makes us the only drilling contractor drilling holes in PNG today.”

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Game-changing capital investment

12 MONTHS Time the Company spent rebuilding two rigs and reengineering them to work safely in PNG

The Company’s aforementioned work alongside Interoil has been particularly indicative of High Arctic’s approach since it entered the Papua New Guinean market, working alongside the operator on its significant Triceratops-3 site to give the Company its biggest year to date.

“Across the second half of last year up until now we have brought two new drilling rigs into the country, with the total spend across the two amounting to around US$75 million; incorporating procurement, refurbishment, shipping, transportation, warehousing and all other aspects involved,” Maguire says.

Scouting worldwide for the

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optimum rig to utilise for the project, High Arctic discovered a game-changer in regards to expanding its footprint in the country, renovating and shipping two rigs found in Brazil to advance the Company’s already unique service offering for its customers.

“We spent close to 12 months rebuilding these rigs and reengineering them to work safely in PNG. Interoil worked with us throughout and supported the process fully, leading them to be very happy with what they’ve seen from us at Triceratops-3,” Maguire enthuses.

A further game-changing capital investment in recent years has seen the introduction of Dura-Base Composite Mats, spending $35 million over the past five years in addressing terrain challenges and the instability that comes from heavy rainfall and regular land slippage.

Maguire continues: “There hasn’t been any oil & gas drilling done in Papua New Guinea in the past five years that hasn’t been done on top of Dura-Base Mats, and this goes hand in hand with the rigs we operate in the country in terms of reducing the amounts of non-productive time, easing logistical challenges and making our customers’ operations more efficient.”

It’s incredibly important - and one of our core beliefs - that we are a sustainable employer here, so we hire locally from the regions we operate in and train them” – Darren Greer, President of International Operations

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Sustainable legacy

The difficulties encountered within Papua New Guinea don’t just end at environmental considerations either, with the population scattered around the country in villages and land-dwellings an equally significant consideration for a Company looking to make a positive impact.

Continuous engagement and enrichment has therefore become one of the most pivotal facets of High Arctic’s continuous improvement strategy to ensure that all work carried out is not only done fairly, equitably and efficiently, but is ideally done so by local citizens.

Greer states: “Across our Papua New Guinea operation, we have around 400 personnel, 325 of whom are PNG citizens.

“It’s incredibly important - and one of our core beliefs that we are a sustainable employer here, so we hire locally from the regions we operate in and train them; in some cases from entry level all the way to front-line operators, as trade-qualified technicians, and ultimately into crew supervisors.”

This same local ethos is applied within High Arctic’s supply chain and formulation of business partnerships where the Company sources locally wherever possible, and subsequently enjoys longstanding relationships with a host of local businesses and landowner companies.

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If it wasn’t for the local community, we’d have never got successfully off the ground to begin with” – Mike Maguire, Vice President of International Operations

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“We’re very proud of this legacy, and we have people working for us who have been here since the first day we started operations in Papua New Guinea,” Maguire says. “If it wasn’t for the local community, we’d have never got successfully off the ground to begin with.

“We were given a lot of support from the local chamber and a lot of the local business community has helped steer us towards a position where we could introduce necessary services and attract the right kind of people who share our culture and our vision.”

Solutions-focused

The sustainability and longevity that High Arctic’s commitment to innovation, finding solutions and local enrichment brings will undoubtedly continue to stand the Company in good stead over the coming years, and especially once the commodity market becomes more amenable again.

However, the track record and portfolio that has been attained in the process is likely to have even more positive ramifications, as the Company’s reputation translates across to the wider Asian continent.

“In the short-term the plan is to consolidate our position in Papua New Guinea,” Greer notes. “We’ve had a big year of growth which is now playing out, but as the commodity market improves in neighbouring countries, the methodology and approach that we’ve been successful with in PNG allows us to look at other Southeast Asian countries, which is where we’ll be looking for future growth.”

Maguire continues: “We don’t differentiate ourselves in PNG through our provision of drilling services. We do so through delivering these services efficiently and cost effectively in some of the harshest environments in the world.”

With much of Southeast Asia dense in rainforest and remote, challenging environments, the opportunity to

HAES drilling crew on one of its highland drilling rigs

replicate its success and track record on a wider scale is a seemingly natural progression, with Papua New Guinea having provided the perfect platform for High Arctic Energy Services to broaden its legacy, and spread its solutions-driven philosophy to more customers than ever before.

“We’ve always been a solutionsfocused Company and that’s part of the legacy from when we started as a private business in 1993,” Maguire concludes. “We’ve seen that if we can provide solutions in these harsh environments for our customers, where there’s a lack of infrastructure, then it creates a sense of partnership.

“Every senior member of staff here has got vast experience in the global oil & gas industry over many years, but the relationship that we enjoy with our customers here at High Arctic is something I’ve not experienced before.”

HAES team conduct a job hazard analysis

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High Arctic Energy Services

High Arctic Energy Services

High Arctic Energy Services

Regional Office:

Port Moresby Office:

PO Box 10830

Level 9, 300 Adelaide Street

Level 2, Ela Beach Tower

Brisbane Adelaide Street

Brisbane, QLD, 4000

Bramell Street

QLD, 4000, Australia

Australia

Port Moresby, NCD, 121

T: +61 7 3221 5394

Papua New Guinea

info@higharctic.com.au

www.haes.ca