Marc Sitaram, Operations Manager at Bandera Oil Tools, discusses the company’s strategic approach to supplying oilfield equipment in Trinidad and Tobago and the drivers behind the demand they encounter. Bandera Oil Tools provides equipment for both onshore and offshore operations.
Q: How would you describe your core activity and business model in Trinidad?
Marc Sitaram: When Bandera started operations in Trinidad, our initial focus was on refurbishing drill bits for land-based drilling operators. Over time, we expanded our offerings to include a variety of other products, in addition to drill bits primarily manufactured in the USA. Although we were acquired by Anfield Services a few years ago, our operations have remained consistent.
Despite a decline in land drilling operations, we still serve the same clientele and maintain a steady workload. We represent several product lines, such as Kingdream drill bits, and are the sole agents for American block flowline products in Trinidad. Additionally, we are the exclusive agents for Derrick shale shakers, Bestolife thread compounds, and Eneroil in Trinidad, Guyana, and Suriname. We also supply Smith and Baker Hughes drill bits.
Q: How would you describe the demand that you have been experiencing from the Trinidadian producers?
Marc Sitaram: Onshore drilling activity in Trinidad remains robust, with Bandera capturing about 90% of the drill bit market share. We supply companies like Touchstone Exploration, who are actively drilling in the Cascadura and Coora projects, as well as Lease Operators, Heritage Petroleum, and Petroleum Contracting Services.
The onshore market in Trinidad is currently more active than offshore, which benefits us. With many drilling projects planned for 2024, we expect significant contributions to our activity and business revenue from land-based operations.
Q: Are there any key factors that influence the regularity of the demand for drill bits in your market share for onshore activity?
Marc Sitaram: The demand for drill bits is influenced by several factors, including well design, depth, and the bit’s brand. Land formations also play a role, as they can dictate the lifespan of a bit, sometimes requiring multiple bits for a single well section.
Clients order bits, thread compounds, or casing based on their drilling needs. We offer various bit types, such as PDC bits, mill tooth bits, and tungsten carbide (TCI) bits, which are commonly used by all operators. Occasionally, operators encounter changes in formation that necessitate more resilient bits.
While we rarely receive requests from offshore operators due to their preference for integrated service companies, we can supply specific bits when needed.
Q: Are you currently supplying operators in the wider region, such as Guyana or Suriname?
Marc Sitaram: In Guyana, major international service companies like SLB, Halliburton, Baker Hughes, and EnerMech dominate the market. Our involvement primarily includes providing thread compounds, representing BESTOLIFE products in the region.
In Suriname, we have a longstanding relationship with Staatsolie, continuing to supply them with drill bits through 2024. We also work with Decker Petroleum & Marketing Company, supplying various products from our portfolio.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
