NXG Drilling Services has invested more than £2 million in two new Grampian-based 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. This adds to the existing operations that NXG has already set up in Holland and 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) earlier this year.
NXG now has contracts in place with all the major service companies and, as a result, operates in more than 50 countries. The company is on track to record turnover of £4 million by the end of the year.
The firm currently employs 15 people but is looking to add a further 18 before the end of the year, with most new recruits based at the Longside operation.
NXG Drilling Services supplies a range of bottom-hole assembly equipment including stabilisers, subs, drill collars, hole openers and reamers. It 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, Chief Executive, NXG Drilling Services, said: “We have the in-house expertise to look beyond the North Sea, although I believe the local market will pick up before the end of the year.
“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.”
9 Aug 2017