Smith InnerArmor Technologies
Sub-One Technology and Smith International are pleased to announce a formal partnership to jointly commercialize the application of Sub-One’s advanced InnerArmor® technology for oil country tubular goods (OCTG) applications. The joint venture, Smith InnerArmor Technologies, LLC has the exclusive license to supply the full range of OCTG products on a worldwide basis. By delivering InnerArmor solutions for the OCTG market, Smith InnerArmor Technologies will enable oil & gas customers to meet the needs of the demanding environments prevalent in today’s exploration and production activities. Typical applications envisioned are production tubing in sour gas environments, wells where scale is problematic, and drill strings to reduce wear and friction pressure losses.
InnerArmor technology is a revolutionary surface enhancement process that provides a combination of very high hardness, enhanced resistance to corrosion/wear/erosion as well as a low coefficient of friction to the internal surfaces of OCTG and other metallic components. By using Sub-One’s hollow cathode immersion ion processing technology, true protective barriers can be formed inside of tubular products.
Further information and frequently asked questions:
- What is the scope and charter for Smith InnerArmor Technologies (SIAT)?
SIAT was formed to focus on rapid commercialization of InnerArmor-treated OCTG products. The nature of OCTG, where demand is expressed in thousands of feet, as opposed to hundreds of components, presents a unique manufacturing challenge. To meet the needs of the OCTG market, highly-customized InnerArmor systems will be required that are capable of automated, 24/7 high volume production. In addition, multiple sites will be required strategically around the globe to minimize logistics and inventory expenses for the customer base. The significant global presence and reach of Smith International, along with their strong manufacturing expertise, provides a good foundation for the high demand and heavy infrastructure needed to properly support OCTG applications. SIAT will support the development of a high volume OCTG InnerArmor system along with the needed infrastructure to prepare and handle the large quantities and size arrays. - Where will the JV be headquartered?
Initially, the JV will be headquartered in Houston, Texas at the Smith International corporate headquarters on 16740 Hardy Road. Much of the initial development will be performed at Sub-One Technology headquarters in Pleasanton, California. - Where are the planned manufacturing locations?
The first location will likely be in Texas. Additional sites are envisioned to support regions with high market demand to ensure efficient regional supply. Smaller, product-specific sites are an option for future deployment to address niche applications. - What products are covered by the JV?
SIAT will be the exclusive global source providing InnerArmor protection to the range of OCTG products lines. InnerArmor-surfaced tubulars are expected to benefit the drilling, completion, maintenance and production activities in the oil and gas industry as well as geothermal and water wells. InnerArmor can be used both for production and injection wells. - What is the anticipated schedule for manufacturing launch?
Addressing the majority of current market demand, the JV’s initial envisaged product is Range 2 tubing (28-32’ in length) with 2-5” ID. The objective is to have a functioning facility by the second half of 2010 capable of supplying 300,000 linear feet per month. Addressing current OCTG areas which cannot withstand wear and corrosion conditions, the JV’s initial efforts will be weighted towards production tubular and casing. As market demand dictates, it is anticipated that longer lengths, larger diameters, and additional OCTG product lines will be offered. - When will the JV be ready for sample parts and production?
SIAT plans to supply trial quantities of OCTG products towards the middle of 2009 in the form of pup joints for select applications and testing. This will facilitate field evaluations as well as support optimization of tubular surface properties and composition for the specific environment. Requests for information, data and/or samples on OCTG applications should be directed to SIAT. A prototype, low-volume InnerArmor system will be operational early next year to supply limited quantities on the full range of lengths and diameters to facilitate larger scale qualifications. - How much will InnerArmor treatment cost?
The overall cost of ownership for InnerArmor-treated tubular products will meet or beat the existing coating solutions and/or higher alloy base materials while offering improved operational lifetimes and efficiency. - Are there current installations and evaluations of OCTG with InnerArmor technology?
At present several field evaluations are underway using single or multiple pup joint assemblies in drill/production strings to quantify the InnerArmor performance benefits. Current testing is focused on sour wells, steam injection, and high solids content production fluids. No complete drill strings have been tested as of today. SIAT is actively looking to expand the field trial and qualification efforts and welcomes further inquiries. - How can I get more information on SIAT or evaluate InnerArmor-treated OCTG products?
For further information on Smith InnerArmor Technologies or the application of InnerArmor to OCTG please contact Mark Gore at (925) 924-1020 or mgore@smith-innerarmor.com or Jim Reynolds at (214) 724-4478 or jreynolds@smith-innerarmor.com.