Athens Group
Athens Group specializes in rig automation and helps the drilling industry improve the reliability, safety and operational efficiency of highly-automated rigs by preventing software-related equipment failures.
MN: How is business?
We are busier than ever. Our 2008 revenue was up 66 percent over 2007 and first quarter 2009 revenue is up 65 percent. Booked business is up too. Many mechanical rigs have been laid down or stacked due to the downturn, yet highly-automated rigs are still drilling because they are more productive and able to drill further and deeper offshore. In the last 12 months we have delivered our Drilling Technology Assurance (DTA) Services on the Ensco 8500 and 8501, West Hercules, Maersk Resilient, Eirik Raude, Leiv Eiriksson, Scarabeo 8, Gannet Alpha Platform, Stena Carron, Stena Don, Stena Forth, Stena Tay, West Capella, West Phoenix and Transocean's Development Driller III.
MN: To what do you attribute your success?
Mike Haney, CEO, Athens Group
Software now manages mission critical rig and drilling functions. The Drilling Control System (DCS), safety, vessel and power management, blowout preventer and dynamic positioning systems now require a third party software expert. The DCS and the interfaces between all these systems are often the weakest links on rigs. Together they represent 20 to 30 percent of total annual non-productive time costs on high specification offshore rigs. Also, the DCS manages 75 to 95 percent of the movement and the operation of the drill floor equipment that causes the most rig accidents. On many projects the cost ratio of our Drilling Technology Assurance Services to non-productive time savings exceeds 1:100. Our services are highly cost-effective because when drilling stops, due to equipment failure or a safety incident, the drilling contractor loses the day rate and the operator loses time to first oil. This is significant when the average day rate of a semisub or drillship currently operating in deep water is $386k and new rigs will command up to $650k. Rig equipment and the cost of replacing equipment in the middle of operations can cost a few to tens of millions of dollars. Failure in one area can have a ripple effect, damaging even more equipment. And, of course, equipment failures can cause environmental damage, injuries and deaths.
MN: What is the outlook for your market?
2000 and 2008; from 2009 through 2012, 93 will be delivered. This is straining resources industry-wide. We predict that more rigs than ever before will be pushed out of the slip before the software is adequately tested and before issues can be resolved. In the near-term this scenario will drive even greater demand for our services. By the end of 2012 there will be approximately 130 rigs with complex, highly-automated systems. These rigs need annual audits, refurbs every five years and occasionally hurricane remediation services. We believe that in the near future, a software expert will be on board every rig, every shift, just as every rig now has mechanical, structural and engineering technicians. Also, through our involvement in industry bodies like the IADC, we are collaborating with the many equipment vendors, drilling contractors and operators working to define software standards and continuously improve overall software quality.
C.E. Supply Company
C.E. Supply Company buys, resells and parts-out diesel and natural gas engines, gensets and transmissions. The company deals in Caterpillar, Cummins, John Deere, Deutz and Volvo brands.
MN: How is business?
Only 41 high-specification rigs were delivered between
30 MN
This is a good time to be in the business of recycling engines, generators and transmissions. In terms of dollar volume we are way ahead of 2008. By the end of the first
August 2009