KUDU Expands Global Presence as Business Booms Worldwide

As the world focuses on Canada for oil and gas resources, the spotlight has expanded to oilfield services companies. In-the-field expertise, high-performance technology and qualified training has made companies like KUDU Industries Inc. a hot commodity in an expanding global market.

Established in 1989, KUDU has built an international reputation for researching and developing crucial products for oil field activities. Specializing in Progressing Cavity Pump (PCP) solutions to the oil and gas industry, KUDU has answered the need for heavy, medium or light oil; coal bed methane and dewatering applications in over 32 countries.

While the company operates its head office and manufacturing facilities in Canada, it has strategically launched offices in the U.S., Romania, Oman, Kazakhstan, and Australia. The most recent plans for an office is in the northern city of Perm, Russia.

“This opportunity in Russia is massive in terms of production, with many of largest oil companies in the world operating there,” says Alex Damjanovic, KUDU ’s Chief Operating Officer. “Their wells and geography are very much the same as Canada. We determined that if there are so many similarities, why can’t our technology work there?”

The answer is that it can and does. Damjanovic says there was so much interest, the company quickly researched the market. It then mobilized local staff and advisors to understand the particular requirements and challenges of Russia’s mounting activities in the industry.

The sheer vastness of the country dictated a need to focus on the market segment that would become our entry into this market.

We built a platform of specialized service with new technologies as well as providing core products like pumps, top drives, downhole tools, power units and drive heads. It allows us to respond to a specific play and then expand quickly with higher volume core products.

Damjanovic cites the next step was to create a home advantage—hiring local engineers and technical specialists who can deliver the goods and the knowledge directly.

“As in every country in which we provide services in, having a local footprint was key in Perm,” he says. “We are not a visitor. We are there supporting the economy and we’re invested in building and maintaining a long-term stable relationship. No translation required.”

The company was mindful not only of the cultural requirements, but also, the need to contribute to the local economy on their terms.

“Our clients around the world are proud of their industry and standards,” Damjanovic says. “We know that we have to do business with a particular country’s currency and write the contracts in the local language. Employees get paid in that currency.

Service and product agreements are written in their laws. This presents the greatest chance of success. Adapting Kudu’s culture into the local market with no dilution of our values its effectiveness”

He adds KUDU ’s growth strategy has consistently met or exceeded target expectations, so the time was right to aim for another aggressive expansion domestically and internationally.

“What Russia means to KUDU is that it provides a market for continued double digit growth and aligns our products, services and know how as a competitive advantage. Our aim is to be a market leader, even if that means within a particular segment amongst a fiercely competitive industry.

The company has already found success in a recent launch of a service centre in Bakersfield, California. But it isn’t stopping there. The company is adding a new field service centre in Aktobe, Kazakhstan to further support customers in that area.

“We’ve also been awarded a large contract in Queensland, Australia requiring mobilization of service centres, managing capacity and getting product to the client’s work sites. It has helped to add double digit growth.”

KUDU ’s priority is to design new technology systems engineered to handle the demands of heavy, medium or light oil; coal bed methane and dewatering projects. New technologies and products are one of the main pillars keeping us ahead. The most recent innovation garnering attention is the patented Progressing Cavity Pump Top Tag.

It allows the user to land the rotor inside the stator without using a tag bar. This frees up restrictions into the pump intake promoting optimal flow from the reservoir through the pump. In addition a paddled rotor design agitates the fluid coming into the pump as apposed to being dictated and often limited through the tag bar.

Top tag also brings immediate benefits by reducing plugged intake and pump burnout. The ingenious rotor is never run in compression on the tag bar, eliminating rotor breakage due to running on the tag bar

Ideal for limited sump applications, with the same space out procedure as a tag bar, clients find less jewelry at the bottom of a wellbore and there are no downhole restrictions. Top Tag also gives easier access to coil in the annulus and clean out. It can also pare down the chance of flushing, loading and coil interventions.

Damjanovic says the company had been working on improving inflow and minimizing restrictions of pump intake for clients for years. The company dedicated a team for over a year using our new product development process which included customers, engineering and field testing. Dubbing it a “simple device”, it has performed successfully in over 3,000 installs in the Lloydminster area alone.

“In a nutshell, we’re removing the chance of any obstruction below the pump,” he says.

“Because the rotor increases agitation, there is a greater mixing of oil and sand. Trouble shooting is so much faster and easier and costs are lower because the landing plate in the Top Tag is easily pressed out and replaced if it becomes damaged”

Following the 80/20 rule, KUDU aims to make products that serve 80 per cent of the market, allowing the other 20 per cent for customization. Damjanovic says any new development needs to be driven by their customers. With a dedicated group of openminded engineers, technicians, sales and field specialists, the focus is on listening to what matters most to clients.

“You can put all your energy into too many niche products, which can limit you,” says Damnjanovic. “But when we have a particular need to meet, you have to make it happen. Customers are paying for this development and each of our stakeholders touches our products from start to finish. It’s important for everyone to have a vested interest.”