Beta 1

Title Flexible Choke and Kill Lines
Author Sønderris, Anna Buchholtz (Copenhagen University College of Engineering, IHK)
Svantesson, Andreas Stolt (Copenhagen University College of Engineering, IHK)
Supervisor Hundebøll, Peder M. (Copenhagen University College of Engineering, IHK)
Stisen Flyger, Charlotte (Copenhagen University College of Engineering, IHK)
Institution Ingeniørhøjskolen i København, IHK, DK-2750 Ballerup, Denmark
Thesis level Bachelor thesis
Education Diplomingeniør, Eksport
Education Bachelor of Engineering
Publication date 2013-05
Abstract This report will determine the feasibility of producing flexible Choke and Kill (C&K) lines within NOV Flexibles. These lines are used in the drilling industry and have a similar construction to the company’s existing flexible pipe products. The company wants to evaluate the feasibility because an internal demand for these lines has been identified within the NOV Corporation.
NOV Asker and NOV PCG constitute the internal market and use C&K lines as OEM components in their final solutions. The internal market has an estimated value of 8.8 million USD annually. To be able to satisfy the internal demand, NOV Flexibles shall supply lines with inner diameters (ID) ranging from 2” to 4” and working pressures of up to 15,000 Psi. According to API 16C, the lines’ operating temperatures must be from -20 to 100C (rating B) or from -18 to 121 C (rating U).
A competitor analysis shows that two flexible pipe manufactures, ContiTech and Technip, dominate the internal and external market. The size of the external market in 2012 is estimated to 148.7 million USD.
In the competitor analysis, best practices of the competitors supply chain activities are investigated. NOV Flexibles is advised to keep manufacturing, engineering and assembly locally at the plant in Kalundborg from where they will expedite all sales. This is due to the high cost of establishing assembly sites abroad. Additionally, they must utilize the existing sales channels within NOV, who have experience with the drilling industry, to reach out to clients on the external market.
A design developed by NOV Flexibles confirms that they are capable of manufacturing a line that is technically superior to competing C&K lines at a competitive price.
To qualify C&K lines for the market, the company must perform six API 16C tests which will take 95 weeks. A budget starting from 2014 shows that the cost to market is 6.9 million USD. If NOV Flexibles becomes the sole supplier to the internal market and conquers 5% of the external market by 2018, the break-even point is reached approximately five years after project start. After break-even is reached in 2019, NOV Flexibles is estimated to have a 7% share of the external market and an annual profit of 6.6 million USD.
Pages 305
External partner Ledere og medarbejdere i private virksomheder
Admin Creation date: 2013-05-21    Update date: 2013-10-11    Source: ihk    ID: ihk-14536784    Original MXD