Metal Bulletin Research Strategic Outlook for the OCTG Heat Treatment 2 | Page 7
A Strategic Outlook for the OCTG Heat Treatment, Threading, Coupling and Premium Connection Sectors out to 2020
2. Latin America
Threader's capacities Latin
Figure 41: Threader’s capacities in Latin Americain(000America (000 tonnes)
tonnes)
500
Tecnioriente, Colombia
PWR Mission Ind Mec, Brazil
Metal Mecanica LES, Venezuela
400
Vivolca, Venezuela
Grant Prideco/Tube Alloy, Venezuela
Baker Hughes, Venezuela
300
Gulf Engineering Services, Trinidad
IAL Engineering Services, Trinidad
Sertecpet S.A., Ecuador
200
Weatherford Colombia, Colombia
Lupatech, Brazil
Dril-Quip Do Brasil, Brazil
100
B&S Oil Tools, Brazil
FARSUR Servicios, Bolivia
Moto mecanica, Argentina
0
Argentina
Brazil
Venezuela Trinidad and Colombia
Tobago
Ecuador
Bolivia
Torneria El Condor, Argentina
Martin Ricardo Breerton, Argentina
Vallourec & Mannesmann , Brazil
Source: MBR
Source: MBR
Argentina’s dominant position in the line-up is driven by Moto Mecanica, which is in fact a large swing
producer having excess threading and production capacity compared with the local market.
Argentina
Argentina has operated around 60-80 rigs consuming 200,000 tpy of OCTG for the last few years . The key
companies providing OCTG and/or premium threading services to the industry are Martin Ricardo Breerton
(five lathes), Torneria El Condor (12 lathes), Moto Mecanica (360 lathes) and Weatherford. MBR has been
unable to verify Weatherford’s facilities capacity and our estimate may therefore be somewhat off-base.
However, based on that estimate, we place total threading capacity in Argentina in 2011 at about 450,000
tpy – far above local market requirements, even including the Tenaris capacity.
In terms of licences, Argentine facilities were predominantly licensed to Tenaris Hydril, as most of those are
acting as premium threading facilities for the global group.
We estimate the independents were able to achieve an average threading capacity utilisation of 62%, with
30% of output threaded being API and the remaining 70% premium products.
Brazil
We estimate that Brazilian consumption of OCTG products doubled from 252,000 tpy in 2005 to 527,000
tpy in 2008. After flattening in 2009/10, we estimate that it reached 667,000 tonnes in 2011. A significant
increase in drilling from around 30 rigs to more than 70 in 2008, especially offshore, has been the primary
reason for the increase, and that rose to over 80 by 2011. The depth and complexity of the offshore wells is
also adding to per-well consumption levels. Around two-thirds of consumption is of seamless tube, most of
which is sourced domestically. Welded demand has also picked up, however, but to a lesser extent as this is
primarily used onshore. The majority of the increase in output has been met by domestic producers.
The players on the OCTG and/or premium threading market are: Vallourec & Mannesmann (10 lathes),
B&S Oil Tools (16 lathes), Dril-Quip Do Brasil (12 lathes), Lupatech (16 lathes), PWR Mission Ind Mec
(five lathes), Engepetrol, FMC Technologies do Brasil, Vetco Gray Óleo & Gás and Weatherford Industria &
Comercio. During the research process MBR was unable to verify the facilities and capacity of the last four
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