Local expertise across Colombia’s oil and gas value chain

Colombia

Fabio Torres, general manager of Maple Oil Tools, talks to The Energy Year about the company’s involvement in Colombia’s energy sector and how it is adapting to the changing landscape of the Colombian oil and gas industry. Maple Oil Tools manufactures and distributes tools for the oil sector in the areas of completion and artificial lifting.

How have your services positioned you in the Colombian energy market?
We’ve established ourselves as a versatile local company deeply rooted in the Colombian oil and gas sector. Our strength lies in our ability to provide a wide range of services across the entire value chain of the industry. We operate in three main areas: exploration, completion and production.
Our manufacturing capabilities are a significant part of our business. We have a plant in Bucaramanga that produces accessories for both production and completion. This manufacturing arm contributes to about 20-25% of our annual income, which is substantial.
In terms of services, we have a strong presence in well completions. This is currently our most active and profitable area. We represent several major US brands in this space, including Superior Energy Services, NCS Multistage and InflowControl.
Another key service we provide is casing running, which accounts for about 25-30% of our revenue. In this area we have a long-standing partnership with Premiere Inc., a US company we’ve been representing for 13 years. This relationship has been mutually beneficial and has allowed us to establish a strong presence in this particular service area.
The remaining 40% or so of our revenue comes from marketed products, primarily in the completions sector. This includes both our own manufactured products and those from our US partners.

Which major operators within the country are you currently working with?
Our client base is diverse, but Ecopetrol stands out as our largest and most significant client. We currently manage three major framework contracts with Ecopetrol, which collectively account for 55-60% of our annual revenue.
Beyond Ecopetrol we work with most other operators in the country. This includes Parex, GeoPark and Canacol. We’ve also been doing significant business with PetrolCo recently. While our presence with Frontera Energy is not as strong, we do have some specific orders with them.
An interesting and somewhat unique aspect of our business model is that we also count other service companies among our clients. We supply specific products or services to major players such as Halliburton, SLB and Baker Hughes. This B2B aspect of our business adds another layer of diversification to our client base.
For example, we recently started providing sand control services in completion to Halliburton. They’ve moved their own tools for this service to other markets but still need to fulfil this aspect of their larger contracts in Colombia, so they’ve outsourced this specific service to us. This scenario illustrates how the current market uncertainties can sometimes create opportunities for companies such as ours.

How are you adapting to the changing landscape of the Colombian oil and gas industry?
We’re keenly aware of the challenges facing our industry, particularly the decline in E&P reserves due to recent government initiatives. This has led to a significant drop in drilling-related activities, which has impacted parts of our business. However, we’ve managed to maintain momentum in our completion and production service lines, which has helped offset some of these challenges.
We’re exploring international markets, albeit cautiously. We’ve started making some specific sales in Ecuador, and we’re also looking at opportunities in Mexico. However, it’s important to note that currently 99% of our sales are still local. This international expansion is a long-term strategy for us, not an immediate pivot away from our core market.
In terms of technology and innovation, we’re focusing our efforts in three main areas. First, we have in-house development through our design department in Bucaramanga. This team draws on information from all areas of the company to develop new products or improve existing ones.
Second, we work closely with our allies, helping them with specific needs and issues and collaborating on the development and implementation of new technologies. Finally, we’re always on the lookout for existing technological developments from outside that we can bring in and incorporate into our portfolio.

What sustainability practices are you implementing in your different operations?
Sustainability has become an increasingly important focus for us over the past few years. We’ve been working on several fronts to improve our environmental performance and contribute to the overall sustainability of the oil and gas industry.
A couple of years ago, we started by measuring our carbon footprint. This was a crucial first step, as it gave us a baseline to work from. Based on this data, we’ve been setting goals for optimisation and compensation.
We’re also exploring the use of renewable energy in our operations. Specifically, we’re looking at implementing photovoltaic energy systems for our internal operations. This project is still in the planning stages, but we see it as an important step towards reducing our reliance on fossil fuels.
Beyond our internal practices, we’re also shifting our focus in terms of how we approach optimisation for our clients. Traditionally, when we talked about optimisation or offering a new product or service, the conversation was primarily about cost reduction. Now we’re increasingly looking at how our offerings can help reduce the number of operations needed, which in turn reduces energy consumption and environmental impact.
We’re also looking at the entire lifecycle of our products and services. This includes considering the environmental impact of our manufacturing processes, the materials we use and what happens to our products at the end of their useful life. While we’re still in the early stages of this holistic approach, we see it as crucial for long-term sustainability.

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