National Oilwell Varco Distribution
Issue 11 2010
Off the shelf
National Oilwell Varco (NOV) Distribution is a products supply and distribution company and part of NOV’s supply chain solutions division.
It possesses a wide spectrum of both third party and in-house products, working with clients internationally to deliver the best possible solutions. It has recently acquired a subsidiary company in Kazakhstan with the aim of expanding its operations in Eastern Europe.
NOV Distribution began over 15 years ago with a small company called DeMij. In 2000 the company moved to its current location of Beverwijk, the Netherlands, before being taken over by the NOV Group in 2001. Since the take over, the company’s major customer has been Noble Drilling, though it has also worked with many other major offshore operators.
Managing director of NOV Distribution, Richard Dijkstra, explains more about his department and the group as a whole: “The NOV Group is divided into several parts including downhole solutions, drilling solutions, engineering, lifting and handling and well services. We are part of its supply chain solutions. Our main focus is on the bigger companies based here in the Netherlands and Europe such as Wintershall, Gaz de France, Noble Drilling, Transocean and KCA Deutag.”
Approximately 70 percent of NOV Distribution’s business happens within the Netherlands, but the other 30 per cent happens across Europe including countries such as Italy, Spain, Germany, Poland and the UK. “We also recently acquired a company in Kazakhstan called Group KZ,” adds Richard. “They have become part of the NOV distribution family now, and it is a very good opportunity for us to use this new company to expand our business in the region.”
One of the NOV Distribution’s main strengths is the number of different products it is able to offer clients. From a single source, customers have access to over 2000 different line items from stock, half of which are manufactured by NOV itself and half of which come from other suppliers. This huge range includes items as diverse as medicines, valves, ring joints, hammer unions, daily consumables (typical rope, soap and dope items) and PPE items, and it even has access to out of production components for older equipment. One of the most significant third party product lines the company sells is Redwing Safety gear, including safety footwear and coveralls.
“Of course on the PPE side, for example, there are competitors better able to provide specialised items and on the instrumental side there are other companies able to provide a wider range than us. The strength of NOV Distribution is that a customer can put all of its requirements into a single order and we will be able to provide it all. Our customers do not have to source from five or six different suppliers, they just come to us and we can provide them with almost anything,” Richard explains.
He adds: “For example, with Noble Drilling last year we procured items from over 800 different suppliers, so for them there was just a single stop whilst we did all the work. By combining the freight and cost of shipping then making a delivery once a week, we provided them with an ideal service.”
There are other advantages an NOV Distribution client receives, such as international service. Because the company has offices located in the UK, Norway and the Netherlands, clients operating in the North Sea can rely on the company to ensure they have the exact unit they require because purchase order data is shared between all the sites. Being part of the NOV Group, wherein there is a great amount of collaboration throughout sister companies, NOV Distribution is also able to rely on the resources its partners to provide a quality service.
Though there was a small drop of income for the company during summer of 2009, overall figures defied economic trends and saw even higher revenues than 2008. Richard explains one of the main reasons behind this success: “We are essentially providing the daily consumables used by offshore customers. Whilst big projects and one-off items could wait until later in the year, spare parts and consumables are needed to ensure a rig keeps running. Those are always in demand.”
Looking toward the future, he concludes with NOV Distribution’s aims for expansion: “The company is looking to expand more over Europe, and especially into the eastern parts of Europe. Apart from Kazakhstan, of particular interest to us is Poland where a lot of oil drilling is occurring and we do not yet have much of a presence. This is true also for Germany. There are plenty of opportunities to broaden our horizon in these countries and we hope to seize them.”
National Oilwell Varco Distribution
Services: Fully integrated product supply