Technology and customer focus update
Technology innovation is critical to delivering value to our customers and the industry. The energy and commitment we put into innovating our processes and portfolio have strengthened our product and service offerings, optimized our global footprint, enhanced customer relationships, and boosted our performance-driven culture.
Product & Service Portfolio
In 2021, we made significant changes to our portfolio structure to match exploration and production (E&P) investment trends and align our focus and strategy around the well lifecycle. As such, our new portfolio structure consists of three segments: Drilling & Evaluation (DRE), Well Construction & Completions (WCC), and Production & Intervention (PRI).
Our Realigned Reporting Structure
Each segment provides services to core oil and gas and new energy markets, enabling improved customer collaboration, growth opportunities, and stronger operating processes and investment choices. Our decisions across all facets of our business are based on three strategic vectors: our Product and Service Portfolio, Digital Transformation, and ESG and the Energy Transition.
Our market-leading offerings include Managed Pressure Drilling (MPD), Tubular Running Services (TRS), Cementation Products, and Fishing & Re-Entry.
Managed Pressure Drilling
MPD started as an essential technique for drilling wells with narrow pore-pressure, fracture-gradient windows. Now, it's a necessary part of drilling applications as a performance-enhancing solution.
As the MPD leader, Weatherford has provided a field-proven portfolio of related technologies and services that have helped our customers achieve unmatched safety and cost savings for five decades and counting. Our exclusive MPD technology and services continue to deliver value for our customers. Ranging from automated to intelligent, our MPD offerings help operators enhance safety, lower well-construction costs, reduce well-control risks, and increase production.
Victus™ intelligent MPD and the next generation of automated risers are exclusive technologies with growing interest from customers. Our new awards, extensions, and operational successes showcase our global leadership in this technology.
Following a successful implementation of a Weatherford MPD system, Shell awarded the Company a two-year, multi-rig contract to extend MPD operations in deep water and continue the well delivery benefits that MPD offers. This is but one of many examples of operators seeing the safety and cost benefits of our MPD solutions. We also continue to enhance our offerings in this area.
50+ Years of Market Leadership
2 Year Multi-rig Shell Contract
Tubular Running Services
We focus on well integrity, safety, and efficiency in every step of TRS. With over 60 years of experience and a portfolio ranging from conventional equipment to advanced mechanized rig systems, Weatherford engineers high-quality, high-value solutions that address every Well Construction and Completion scenario.
Our proprietary and market-leading TRS solution, Vero® automated connection integrity, leads innovation in the TRS space. Vero applies artificial intelligence for automated connection make-up and evaluation rather than relying on human influences and judgment. As a result, our technology provides well integrity assurance by eliminating errors or oversights that can lead to safety incidents and costly remediation as well as reputational damage. The success of Vero is exemplified by the recent milestone of 400 jobs performed around the world across all our Geozones.
In 2021, Saudi Aramco awarded Weatherford a five-year Tubular Running Services contract to support onshore and offshore operations. Weatherford was selected based on its technology, safety record, quality performance, and commitment to local content.
Our TRS track record spanning multiple decades and revolutionary technology innovations make us the leading TRS provider globally.
60+ Years' Experience
5 Year TRS Aramco contract
Each well has vastly different pressure, temperature, structural, and fluid characteristics, making no two operations the same.
Our innovative systems have helped customers achieve reliable wellbore integrity and zonal isolation for more than 55 years. As the industry leader in deepwater and unconventional cementation products, our offerings enable customers to drive casing to depth, manage surges, and optimize cement placement, thereby setting the stage for life-of-well integrity.
We saw tremendous growth in this area in 2021, led by our North American operations.
55+ Years of Reliability
2021 Saw tremendous growth In North America
Fishing & Re-Entry
Our expertise in fishing & re-entry is what makes the difference between efficient and single-trip operations versus nonproductive downtime. Recognized as the global leader in this space, customers depend on our expertise and field-proven technologies to diagnose, plan, and execute optimal fishing & re-entry operations.
Historically, fishing & re-entry has been viewed as a manual process, but we've digitalized each aspect of the workflow. Our AccuView® real-time support and job planning engine enables efficient mapping and execution across fishing & re-entry operations. This same platform also increases efficiency and performance during liner hanger operations.
Enabling Digital Transformation is a strategic vector at Weatherford. As one of our Company's high priorities, digitalization and automation are critical to our ability to deliver our customers' needs and stay competitive in the market.
In 2021, we made tremendous headway in expanding into new geographies and believe this expansion will further the deployment of our digital platforms. In turn, we can help our customers to reduce downtime and increase operational efficiencies across all three of our segments.
Our investments in digital capabilities have continued to deliver value to our customers in their ongoing digital transformation journeys. We have seen renewed interest from customers in our digital offerings, which feature remote operating capabilities, visualization, edge automation, and artificial intelligence.
For example, a large operating company in Colombia awarded Weatherford a three-year contract for the ForeSite® production optimization platform, making it the leading production optimization offering in that part of the world. Additionally, an NOC in the Middle East recognized our production automation and software services for performance excellence and problem-solving in the face of extreme challenges. And following up on these accomplishments, Hart Energy declared ForeSite Edge as a winner of the 2021 Special Meritorious Award for Engineering Innovation. This honor further solidifies it as a best-in-class platform with game-changing technical and economic potential for our industry.
ForeSite Edge is a best-in-class platform with game-changing technical and economic potential for our industry
- Weatherford was awarded a three-year contract by Kuwait Oil Company (KOC) to support its digital transformation strategy in the North Kuwait Heavy Oil field and for deploying its Integrated Enterprise Excellence Platform across KOC. The award includes instrumentation, real-time monitoring, and production optimization enabling KOC to optimize its production and workover plans.
- As a further testament of the Company's digital capabilities, Weatherford officially launched the first phase of a contract for rig site data management and visualization services with KOC, completed the implementation of the Centro™ platform, and helped to establish KOC's real-time drilling decision center.
Digital solutions like ForeSite Edge, Vero, Victus, the Centro drilling optimization software platform, and AccuView were again the focus of our WESC Digital Conference 2021. This is Weatherford's largest customer event and the industry's preeminent digitalization forum, and 2021 marked the 16th Annual Conference featuring advancements from well construction to production. The size and scope of the show expands year after year. In 2021, we had virtual participants from Houston to Abu Dhabi and Jakarta, and we held nearly twice the number of breakout sessions for customers.
ESG Portfolio & The Energy Transition
ESG and the Energy Transition are extremely important to Weatherford, both for our Company and our customers. As a Company, we are making progress to reduce our carbon footprint. We have affirmed our commitment to being net-zero by 2050 and have signed on to the UN Global Compact.
Our technology portfolio supports our customers' drive to achieve net-zero emissions, and their initiatives across several operations, showing that we already have what it takes to help customers produce with fewer emissions and aid in new energy ventures, such as CCUS and Geothermal projects.
In 2021, we gained tremendous traction from our customers, particularly in Europe, where we continue to see increasing levels of engagement in Geothermal activity. We are also engaged in advanced conversations with multiple customers about carbon-capture operations. In addition, our Firma™ abandonment and slot recovery solutions continue to make further inroads in the market.
We continue to see increasing levels of engagement in Geothermal activity and are engaged in advanced conversations with multiple customers about carbon-capture operations
Weatherford has a 23-year history of delivering results in Geothermal projects, including drilling the world's hottest borehole in Iceland, geosteering the world's first 90-degree Geothermal well in Canada, pioneering the Turkish Geothermal market, and drilling and logging wells for Munich's largest Geothermal heating plant.
To ensure a sustainable future in the new energy economy as an energy services company, we will drive the same technology differentiation and innovation as we have in traditional oilfield services. We are actively pursuing opportunities in CCUS while working on Plug and Abandonment projects for customers in multiple geographies. We also remain excited about Geothermal as an essential energy source. During the third quarter of 2021, we provided the technology and engineering needed to rejuvenate a geothermal well in Germany.
You can read more about our commitment in the Sustainability section of the Annual Report.
Customer Focus & Commitment To Safety
We put our customers at the heart of every decision we make because they are why we do what we do. We continue to be a trusted partner among our customer base because of our unique focus on strengthening relationships with value-added solutions, unique offerings, and commitment to service delivery.
Safety is fundamental to our operational integrity and customer commitments. Weatherford works to improve its service delivery continuously, and our customers recognize these efforts and their impact on operations.
We Achieved Our Total Recordable
Incident Rate Targets For 2021
20% YOY nonproductive time
46% YOY lost-time days
47% YOY preventable vehicle incident rate
Throughout 2021, several customers recognized Weatherford operating teams for our outstanding commitment to quality, health, safety, and the environment:
- KOC awarded Weatherford the CEO HSSE Award for logging and perforation services to recognize our outstanding health, safety, security, and environmental achievements.
- An Independent Oil Company bestowed the “Outstanding Operational Excellence” award to the Tubular Running Services team in Tengiz, Kazakhstan.
- A National Oil Company in the Middle East recognized Weatherford for delivering 20 years of liner-hanger services without lost-time incidents.
Achieving this outstanding safety track record and receiving continual accolades from customers does not happen by accident. Our relentless pursuit towards continuous improvement ensures that every Weatherford employee keeps safety and customer satisfaction at the forefront of what they do.