Commentary by Lasse Jokela
I recently spent several weeks in Southeast Asia and Australia, and this has given me a firsthand and up-to-date understanding of the current drilling and completion landscape. With that in mind, I am pleased to share insights into Ace's expanding presence in Southeast Asia and Australia.
My professional background is in well completion operations for a major service provider. This brings valuable experience to my position as a sales engineer for Ace, allowing me to provide a nuanced perspective on completion applications, highlighting areas where our products can significantly impact customer operations.
Ace harbours significant ambitions for Asia Pacific in 2024. While our historical focus has been on well construction, we are strategically poised to penetrate the completion market and thus augment our well construction endeavors. Australia stands as a focal point in this strategic expansion. We are projecting a noteworthy 145% revenue increase from 2023 to 2024.
Our completion offerings, characterized by cost-effectiveness and rapid deployment, underscore our commitment to providing adaptable and efficient solutions.
Looking for a partnership in Australia
In Australia, we are witnessing a notable upswing in activity, particularly with a substantial drilling and completion campaign by a large national operator. Ace Well Technology is actively involved in various aspects of this initiative which will continue well into 2025. Our operational model revolves around ensuring flexible and efficient ad hoc deliveries as required.
Australia's west coast and northwest offshore fields, centred on the city of Karratha, are strategic focal points for us. Australia has substantial reserves of oil and natural gas and is a significant player in exploration and production. The major basins for oil and gas exploration include the Carnarvon Basin in Western Australia, the Browse Basin, the Bonaparte Basin, and the Gippsland Basin in Victoria. Australia is one of the world's largest exporters of LNG. The country has several LNG plants that liquefy natural gas for export to international markets, particularly in Asia.
Our engagement extends into construction with Ace Ratchet Collar (ARC-slim) and our reputable Ace Drilling Centralizer (ADC). Furthermore, we are offering our completion portfolio with our Ace Splice Carriers (ASC) as a mainstay. Simplifying planning and running of control lines, the ASC maximises operational efficiency and and saves up to 6 hours of rig time per carrier run.
We are also in active pursuit of a strategic partner in Australia. Given the expansive geographical distances involved, securing a local partner with trained personnel, logistical acumen, and an intimate understanding of the local market is paramount. Our quest revolves around finding a partner whose capabilities align seamlessly with our operational objectives.
SE Asia opportunities and growth
In Malaysia, Thailand, and Bangladesh, the prevailing narrative aligns closely with our well-established prowess in well construction. However, we are ready to elevate our involvement in completion activities also for these markets. There is unfortunately a current shortage of rigs, posing some challenges for both operators and suppliers. This however does not thwart our ambitious plans for growth, particularly in well completion. The market dynamics in Vietnam remain uncertain, with activity levels dwindling, whereas Brunei appears to hold potential comparable to Bangladesh.
Traveling and connecting with customers in Asia Pacific is a rewarding process. Meeting customers in person is traditionally well regarded in the region, and we find that physical meetings give us a competitive edge. This implies that we will also have a presence at industry events such as OTC in Kuala Lumpur in February 2024 and at AOG Energy in Perth in March. Our commitment to building essential connections in both the construction and completion markets is strong.
Globally, ACE distinguishes itself through reliability, a proven track record, and versatile, cost-effective solutions. In conclusion, ACE Well Technology is strategically positioning itself for growth in Southeast Asia and Australia. We are excited about the opportunities that lie ahead and remain dedicated to advancing well technology in these dynamic markets.