Baker Hughes 2014 Annual Report Download - page 15

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WORKINGINTERDEPENDENTLY
FORGLOBALPRODUCTLINE
OWNERSHIP
In North America, a multi-year
operational improvement program
instituted in 2012 helped our
pressure pumping business achieve
its highest margins in three years.
During 2014, the business reposi-
tioned itself from a spot player to
a business with multiple dedicated
contracts, with more than 70%
of our fleet on contract, with vastly
improved utilization rates in terms
of increased number of stages per
fleet. Its cost structure has been
enhanced with the deployment
of efficiency-based technology such
as the dry-on-the-fly hydration
system, which eliminates the need
to purchase costly mineral oil.
Delivery times have been reduced
by supply chain procedures that
focus on enhanced logistics and
material handling, better contract
management with vendors, and
strategic sourcing of key commod-
ities. Streamlined repair and
maintenance functions have resulted
in fewer days in repair and improved
capital efficiencies.
All of these efforts also helped
Baker Hughes become the most
recommended fracturing service
provider in North America,
according to Welling & Company’s
“Worldwide Survey of the Market:
Hydraulic Fracturing and Fracturing
Mapping 2014” report.
BUILDINGINNOVATIVEWAYS
TOACHIEVEOPERATIONAL
EXCELLENCE
Baker Hughes is supplying advanced
upper completions systems for
Total’s CLOV (Cravo, Lirio, Orquidea,
and Violeta) development, employing
intelligent production technology
in every well.
The CLOV project is Baker Hughes’
largest completion contract
in Angola, and the company has
invested in its infrastructure
to support this project and others
of similar magnitude in the
country. Operations are supported
with project management, detailed
planning, active equipment
delivery coordination and a rigid
implementation schedule.
The company constructed a team
of more than 40 highly experienced
professionals to support CLOV
operations. The project also has
served as a training ground
for local employees, who now make
up more than 70 percent of
the company’s workforce assigned
to the CLOV project.
Pressure Pumping.
Working interdependently with the North America
region for the highest margins in three years
