Weatherford International

Weatherford International plc is an Irish-domiciled multinational oil and gas company which is one of the largest in the world.

Weatherford International plc
Public
Traded asOTC Pink: WFTIQ
Russell 1000 Component
ISINIE00BLNN3691
IndustryOilfield services & equipment
Founded1940s
HeadquartersHouston,Texas[1]
Key people
William E. Macaulay (Chairman)
Karl Blenchard (CEO)
ProductsDiversified Oilfield Services
Revenue $ 9.433 billion USD (2015) $ 14.91 billion USD (2014)
$ 1.546 billion USD (2015)
$ 1.985 billion USD (2015)
Number of employees
20,000< (2020)
WebsiteWeatherford.com

The company provides products and services for drilling, evaluation, completion, production and intervention of oil and natural gas wells, along with pipeline construction and commissioning. Headquartered in Baar, Switzerland, Weatherford operates in more than 100 countries across the globe and employs more than 35,000 people (2016).[2]

On 6 June, Weatherford International announced that Mark A. McCollum, President, CEO and a director, has left the company, effectively immediately. Karl Blanchard, executive vice president and COO, and Christian Garcia, executive vice president and CFO, will form the Office of the Chief Executive, reporting directly to the board of directors and will oversee the day to day operations. The board of directors has initiated a search to identify a permanent President and CEO and will work with a leading executive search firm to assist in the process.

History

The company was founded in 1941 in Weatherford, Texas as the Weatherford Spring Company by Jesse E. Hall Sr.[3][4] In 1948, the company was renamed Weatherford Oil Tool Company (WOTCO) with ownership by Jesse Hall, his son, Elmer, James E. Berry, and Juan A. Perea.[5] From its inception, the company pioneered an innovative technique and equipment for the cementing of cased-hole oil wells.[5] Originally marketed to U.S. well owners, Weatherford drilling and casing equipment was soon being used in the oil fields of Venezuela by the Gulf Oil Company.[5]

In 1972, the separate company of Energy Ventures, Inc. was founded as an offshore gas and oil exploration and production company.[6] In 1987, Energy Ventures was liquidated and re-established, and by 1990, had acquired Grant Oil Country Tubular Company.[7]

In 1991, Weatherford acquired Petroleum Equipment Tools Company (PETCO).[7] Weatherford and HOMCO later merged operations to create Weatherford Services, the largest oil fishing/rental company in the world. In 1995, Weatherford merged with Enterra, becoming Weatherford Enterra Inc.[7]

In May 1998 Energy Ventures, since renamed EVI, Inc. and Weatherford Enterra, Inc. merged, creating the current company now known as Weatherford.[7][8] In the next two years, Weatherford added a number of well-organized brands to its expertise, including Dailey, Orwell, Energy Rentals, Whiting, Williams, BBL and ECD Northwest. Weatherford also created a stronger completion competence with the addition of well-known brands in the sector such as Petroline, Cardium, Nodeco, McAllister, Johnson Screens, Houston Well Screens, Arrow, and CIDRA.

In 2005, Weatherford acquired Precision Drilling Corporation's Precision Energy Services and International Contract Drilling divisions along with signing a $7.8 billion deal with Chicago-based Sonsale Petroleum.

In 2008, the company announced that it was shifting its place of incorporation from Bermuda to Switzerland.[9] That same year, Weatherford completed its acquisition of V-Tech International, a pioneer in the development of mechanical power tong systems in the North Sea to improve rig safety.[10]

In May 2010, Weatherford's Leetsdale, Pennsylvania, facility accidentally released a cloud of ammonium persulfate that resulted in the evacuation of 500 workers from the surrounding industrial park.[11] In April 2014, Weatherford announced that its board of directors approved the relocation of its legal domicile to Ireland from Switzerland. The company will continue to maintain its operational office in Houston, Texas.[12]

On 9 November 2016, Weatherford announced the departure of Bernard J. Duroc-Danner, Chairman of the Board, President, and CEO. It also announced the appointment of Robert Rayne as Chairman of the Board and Krishna Shivram as Chief Executive Officer.[13]

On 6 March 2017, Weatherford announced the appointment of Mark A. McCollum as President and Chief Executive Officer, as well as a member of the Board of Directors of Weatherford. In addition, the Company announced that Mr. William E. Macaulay has been appointed Chairman of the Board of Directors.[14]

The company filed for bankruptcy in the Southern District of Texas on 1 July 2019 along with two subsidiaries. The petition lists assets of more than $1 billion.[15]

Company focus

As an oil and natural gas drilling services company, Weatherford produces a variety of products and services for the oil and gas industry. These include drilling services, electronic well measurement and monitoring, completion, production, and evaluation products and services. In particular, the company has developed directional drilling services that can extend through miles of bedrock with great precision, and tubular running services that are used on almost half of the world's deepwater drilling projects. The company has more sand screen systems installed worldwide than any other company, and production optimization systems in more than 100,000 wells around the world. Weatherford also offers intervention, completion, and decommissioning services for well owners, in addition to pipeline precommissioning, commissioning operations, and one of the world's most diverse fleets of inline inspection tools.[16][17]

Controversy

Sanctions violations

Cuba
Further information: United States embargo against Cuba

According to the United States, Weatherford and its subsidiary P.D. Drilling Holdings Inc. knowingly sold products that included US goods to Cuba, violating the Trading with the Enemy Act of 1917. Staff allegedly falsified documents stating that they had shipped goods to Barcelona, Venezuela, where they were later sent to Cuba.[18]

Sudan

In July 2007, the company was featured in news media reports questioning operations of the company's foreign subsidiary, Weatherford Oil Tool Middle East, which had offices and equipment in the nation of Sudan.[19] Since 1997, U.S. companies were forbidden by law to operate in Sudan, though foreign subsidiaries of U.S. companies could still legally operate in that country if there was no involvement by the U.S. parent or any other U.S. person.[20] Nevertheless, in response to media and investor criticism, the company announced that it would divest itself of any foreign subsidiary operations in countries sanctioned by the United States.[20][21][21] The next year, Weatherford withdrew from activities in Sudan and donated its in-country equipment as well as providing additional equipment, supplies, and funding to Thirst No More, a humanitarian organization operating in Sudan.[22][23]

Paradise Papers

Precision Drilling de Venezuela and P.D. Drilling Holdings Inc., subsidiaries of Weatherford, were featured in the Paradise Papers leak featuring offshore firms located in Barbados.[24]

See also

References
  1. https://www.owler.com/company/weatherford
  2. Weatherford 2009 Annual Report
  3. Riversand Company, Customers. Retrieved 27 April 2010.
  4. Federal Court Of Appeals, Jesse E. Hall, Sr., and Rhoda O. Hall, Petitioners v. Commissioner Of Internal Revenue, Respondent, 294 F.2d 82 (1961)
  5. Hall v. Commissioner Of Internal Revenue, 294 F.2d 82 (1961)
  6. FundingUnivers.com, Weatherford International: Company History. Retrieved 27 April 2010.
  7. FundingUnivers.com, Weatherford International: Company History
  8. "Weatherford Overview." Weatherford International. 6 June 2002. Retrieved 23 January 2010.
  9. "Weatherford planning to relocate base to Switzerland." Houston Business Journal. Friday 12 December 2008. Retrieved 23 January 2010.
  10. Anonymous, Field-tested Power Tong Handles All Sizes Of Casing, Drillpipe, Tubing, Offshore, 1 April 2008.
  11. "Hazmat Called To Leetsdale Chemical Spill". WTAE-TV Pittsburgh. 27 May 2010. Retrieved on 17 November 2015.
  12. Eaton, Collin. "Weatherford moving to Ireland as Swiss executive pay rules change". Fuel Fix. Retrieved 14 April 2014.
  13. http://ir.weatherford.com/cs/wft_investorrelations/news/1413873101431/weatherford-announces-chairman-and-chief-executive-officer-depa
  14. Matthews, Christopher M. (7 March 2017). "Weatherford Names Mark McCollum as New CEO". Wall Street Journal. ISSN 0099-9660. Retrieved 7 March 2017.
  15. Yerak, Becky. "Oil-Field Services Company Weatherford to File for Bankruptcy". Wall Street Journal. Wall Street Journal. Retrieved 11 July 2019.
  16. Weatherford International Ltd., Company Focus. Retrieved 27 April 2010.
  17. Weatherford International Ltd., Pipeline Specialty Services: Production - Precommissioning And Commissioning. Retrieved 27 April 2010.
  18. "UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION UNITED STATES OF AMERICA vs P.D. DRILLING HOLDINGS, INC". University of Virginia School of Law. Archived from the original on 15 May 2018.
  19. Walt, Vivienne, A Texas Company In Sudan, CNN Money.com Fortune, 25 July 2007.
  20. Walt, Vivienne, A Texas Company In Sudan, 25 July 2007.
  21. Walt, Vivienne (12 September 2007). "U.S. oil firm pulls out of Sudan". CNN; Fortune 14 September 2007. Retrieved 15 October 2013.
  22. Laird, Kerry, Weatherford Ending Operations In Iran, Cuba, Syria, Sudan With Loss, RigZone.com, 18 March 2008.
  23. Walt, Vivienne, Weatherford makes amends in Sudan, CNNMoney.com: Fortune, 14 May 2008.
  24. "PRECISION DRILLING DE VENEZUELA | ICIJ Offshore Leaks Database". ICIJ. Retrieved 15 May 2018.
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