National Oilwell Varco 2011 Annual Report Download - page 3

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Index to Financial Statements
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 900 locations across six continents.
The Companys principal executive offices are located at 7909 Parkwood Circle Drive, Houston, Texas 77036, its telephone number is (713) 346-7500, 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 reporting segments: Rig Technology,
Petroleum Services & Supplies, and Distribution & Transmission.
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 drill pipe, tubing, casing, 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 fiberglass 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, Oman, and the United Arab Emirates.
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