National Oilwell Varco 2010 Annual Report Download - page 2

FORM 10-K
PART I
ITEM 1. BUSINESS
General
National Oilwell Varco, Inc. (NOV or the Company), a Delaware corporation incorporated in 1995, is a leading worldwide provider of
equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the
upstream oil and gas industry. The Company conducts operations in over 825 locations across six continents.
On April 21, 2008, we acquired 100% of the outstanding shares of Grant Prideco, Inc. (Grant Prideco) for a total purchase price of $7.2 billion
of cash and NOV common stock. We have included the financial results of Grant Prideco in our Consolidated Financial Statements beginning on
April 21, 2008, the date Grant Prideco common shares were exchanged for National Oilwell Varco common shares and cash. The Grant Prideco
operations are included in the Petroleum Services & Supplies segment.
The Companys principal executive offices are located at 7909 Parkwood Circle Drive, Houston, Texas 77036, its telephone number is
[phone], and its Internet website address is http://www.nov.com. The Companys annual reports on Form 10-K, quarterly reports on
Form 10-Q and current reports on Form 8-K, and all amendments thereto, are available free of charge on its Internet website. These reports are
posted on its website as soon as reasonably practicable after such reports are electronically filed with the Securities and Exchange Commission
(SEC). The Companys Code of Ethics is also posted on its website.
The Company has a long tradition of pioneering innovations which improve the cost-effectiveness, efficiency, safety and environmental impact
of oil and gas operations. The Companys common stock is traded on the New York Stock Exchange under the symbol NOV. The Company
operates through three business segments: Rig Technology, Petroleum Services & Supplies, and Distribution Services.
Rig Technology
Our Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion, and servicing of oil and gas
wells. The segment offers a comprehensive line of highly-engineered equipment that automates complex well construction and management
operations, such as offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating and assembly systems; rig instrumentation systems;
coiled tubing equipment and pressure pumping units; well workover rigs; wireline winches; wireline trucks; cranes; and turret mooring systems
and other products for Floating Production, Storage and Offloading vessels (FPSOs) and other offshore vessels and terminals. Demand for Rig
Technology products is primarily dependent on capital spending plans by drilling contractors, oilfield service companies, and oil and gas
companies; and secondarily on the overall level of oilfield drilling activity, which drives demand for spare parts for the segments large installed
base of equipment. We have made strategic acquisitions and other investments during the past several years in an effort to expand our product
offering and our global manufacturing capabilities, including adding additional operations in the United States, Canada, Norway, the United
Kingdom, Brazil, China, Belarus, India, Turkey, the Netherlands, Singapore, and South Korea.
Petroleum Services & Supplies
Our Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and
workover oil and gas wells and service pipelines, flowlines and other oilfield tubular goods. The segment manufactures, rents and sells a variety
of products and equipment used to perform drilling operations, including drill pipe, wired drill pipe, transfer pumps, solids control systems,
drilling motors, drilling fluids, drill bits, reamers and other downhole tools, and mud pump consumables. Demand for these services and supplies
is determined principally by the level of oilfield drilling and workover activity by drilling contractors, major and independent oil and gas
companies, and national oil companies. Oilfield tubular services include the provision of inspection and internal coating services and equipment
for drill pipe, line pipe, tubing, casing and pipelines; and the design, manufacture and sale of coiled tubing pipe and advanced composite pipe for
application in highly corrosive environments. The segment sells its tubular goods and services to oil and gas companies; drilling contractors; pipe
distributors, processors and manufacturers; and pipeline operators. This segment has benefited from several strategic acquisitions and other
investments completed during the past few years, including additional operations in the United States, Canada, the United Kingdom, Brazil,
China, Kazakhstan, Mexico, Russia, Argentina, India, Bolivia, the Netherlands, Singapore, Malaysia, Vietnam, and the United Arab Emirates.
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