Varel International and ESIP Energy Create Drillbit JV

Release--Varel International and ESIP Energy, SA Create Joint Venture

Varel International and ESIP Energy, SA announce the creation of a joint venture drill bit operations related company. The agreement was signed in April 2012 by Varel President and CEO Jim Nixon and ESIP Energy’s Matias Arnau.

Per the agreement, Varel will provide product, components and technical assistance to the Joint Venture which covers Argentina and Chile. According to Steve Brooks, Varel region manager – Gulf Coast, Mexico, Latin and South America, long range plans for the agreement are to increase local content to serve Southern South America markets.

“The arrangement will be very beneficial to both Varel and ESIP. We are relying on their ability to service the customer at the office and field level with a presence in all key locations,” explained Brooks. “ESIP comprises a professional group – an experienced, trained and dedicated team and a first-class facility to service and redeploy the Varel products. Through our agreement we gain the benefit of ESIP’s extensive experience with customers, applications, market knowledge and complete understanding of what is required to offer best of class service and products to the market.”

The ESIP team is led by Ricardo Arnau and his son Matias Arnau. Ricardo Arnau brings more than 30 years' drilling business experience in Argentina and across South America to the JV. Martin Perez and his consultancy firm Compromiso Humano have supported ESIP since its inception and were instrumental in bringing together Varel and ESIP to form the joint venture. Compromiso Humano also provides consulting services to Varel. Varel’s Brooks was the company’s point-person and led the development of the relationship from the Varel side.

“We are grateful for our association with Varel; this agreement allows us to accelerate our growth and to gain both technical and financial support which allows us to better serve our customers,” conveyed Matias Arnau. He continued, “This partnership will allow us to continue participating in the vibrant Argentine market. Looking forward we expect to gain substantial market share and position the company for additional growth in the future. This JV with Varel brings us closer to our next goal of establishing a local assembly facility for the Latin American market.”

During the last week of May 2012, ESIP and Varel were jointly represented at the Cluster Shale conference held in Neuquen, Argentina. This conference attracted industry professionals from across South America, the United States, Canada and Russia. Martin Perez represented the partnership by presenting a successful case history outlining ESIP/VAREL to the conference participants.