CRITICAL ISSUES IN DRILLING & COMPLETIONS
Technology allows drilling
contractors to bring added value
beyond traditional work scope
Rather than focusing on being the lowest-cost provider,
H&P says it aims for consistent operations and precise
wellbores, whether in US or international markets
John Bell, Senior VP, International and
Offshore, Helmerich & Payne
BY STEPHEN WHITFIELD, ASSOCIATE EDITOR
John Bell is Senior VP, International and
Offshore, at Helmerich & Payne (H&P).

just adds to the complexity of entering and
competing in some of these markets.

H&P has been very active in markets
like the Middle East and Latin America.

What do you see as the biggest chal-
lenges in increasing activity in those
areas? Compared with North America, how
are rig and drilling needs different in
those non-US markets? On the flip
side, where do you see similarities
where H&P can apply its expertise
gained in North America to improve
operations in those other markets?
H&P has operated in most countries in
Latin America, and we’re in Colombia and
Argentina right now. The region is chal-
lenging because of various economic and
geopolitical issues, which have resulted in
a lack of capital being deployed there. This
means the level of activity can be incon-
sistent and leans toward short-term work.

In terms of the Middle East, certainly
there’s a lot of capital being employed, but
it is a very competitive market. There are
also very high barriers to entry. The com-
panies that we work with are primarily the
national oil companies , and the process
that they go through to acquire rigs and
pick up providers is a longer process than
in the US.

There’s also a huge focus on cost, but
from our perspective, working with a cus-
tomer is about more than just providing
the lowest cost. It’s about how you can
bring additional value beyond just what
has traditionally been viewed as what
a drilling provider can provide in these
markets. The other hurdle is that it takes signifi-
cant capital to deploy assets overseas. You
have to prepare the rig, put the rig on a
boat and you often have to add additional
equipment required by the customer. It
16 For us, it’s less about the rigs – because
our rigs can perform the majority of the
work that needs to be done in interna-
tional markets – and more about the type
of work that’s being done. In the US, it’s
been almost exclusively unconventional
drilling for the last 10 to 15 years, which
requires a different mindset, different pro-
cesses and different contractual incen-
tives. Internationally, outside of the Vaca
Muerta in Argentina, it’s still largely a
conventional drilling market.

We believe we can have a huge impact
on these markets as they begin developing
their unconventional resources. However,
we also believe that a lot of what we do
from the standpoint of creating consisten-
cy, applying technology, having seamless
safety and operational processes, can be
very impactful in conventional markets.

ing to use more technology and drilling
automation to differentiate. That has been
our focus over the last handful of years,
and it will continue to be our focus. We
believe properly applying technology will
be a significant differentiator.

So digital systems and software are
going to play a bigger role than phys-
ical equipment upgrades?
That’s a fair assessment. The mecha-
nization of various key components on
the rig will be important, but we’re not
looking at wholesale changes to the rigs
themselves. There are things we can do around
automation that will make a difference,
but it’s also just the digital systems we use
from the standpoint of the operating sys-
tem, from the support system perspective,
whether that’s maintenance systems or
asset management systems, and making
sure we have the right people in the right
place with the right skills.

It’s also about safety – there are so many
things that technology can do to help us
better operate the rig from a safety per-
spective. What is H&P doing to ensure your rigs
will remain competitive over the com-
ing years, or are new rigs going to be
needed? Automation and digital systems have
been a key area of focus within the
industry. What do you see as the big-
gest gains that drilling contractors
have made so far, and what do you
see as the next frontier?
It’s not about having a different type of
rig or having more rigs; it’s about continu-
One thing that our customers want is
consistency. It helps from a planning per-
JAN UARY/FEB RUARY 2023 • D R I LLI N G CO N T R ACTO R