Texas Business reports:  Carrollton’s Varel International and NewTech Services (NTS) announce the creation of a 50-50 joint venture company focused on manufacturing, assembling, servicing and sales of polycrystalline diamond compact (PDC) oil and gas drill bits for the Russian CIS market and beyond.

The joint venture, Varel NTS, will establish a manufacturing and service facility in Kurgan, Russia, creating an alliance between Varel’s technology engineering and manufacturing and the strength of NTS in drilling technology, infrastructure, market knowledge and customer requirements. NTS will also continue to support sales distribution and services of Varel’s advanced oil and gas roller cone products.

 “In this first phase of the venture, Varel will provide support through the transfer of our proven, repeatable technology,”  said Varel International vice president Mike Reese in a prepared statement.  “In addition to our commitment to establishing the physical manufacturing equipment and technology, we will continue this collaboration by providing analytical resources through our proprietary programs, GeoScience formation analysis and SPOT cutting structure design. These focused solutions tools will prepare products for local field implementation and significantly improve performance.”

 “We are taking the initiative through this agreement to introduce cutting-edge application technology to one of the largest oil and gas regions of the world,” said New Tech Services president Mark Sadykhov in a statement.  “CIS countries comprise a land ripe with vast opportunity and we are pleased to be merging our cultures together to bring technology into the region, broaden the talent base and assist the local economy. This effort represents the first time advanced Western PDC bit technology has been transferred into Russia and other countries.”

Varel will coordinate the manufacturing efforts with NTS championing the sales and services enterprise. In addition, Varel will provide ongoing administrative and technology support from the company’s Eastern Hemisphere locations.

Thomas Seeney of Varel, appointed Varel CIS regional manager, will be supported by senior staff members in Kurgan who are currently training at Varel’s Eastern Hemisphere base in Tarbes, France. The new facility, centrally located to facilitate rapid bit delivery across Russia, will increase global Varel PDC drill bit production by approximately 20 percent.

“This capacity will allow Varel NTS to provide Kurgan produced PDC bits to markets external to Russia, helping meet the rapidly growing demand for Varel products in both the Eastern and Western Hemispheres,” Seeney said.

NewTech Services provides technology products and services to companies within the oil and gas industry. NewTech Services is an exclusive Varel International representative, one of the leading international manufacturers of roller cone and diamond drill bits.

Founded in 1947, Varel International is the world’s largest independent supplier in the global oil and gas drill bit market. Headquartered in Carrollton, Varel services oil and gas, mining, and industrial markets with its comprehensive suite of roller cone and fixed cutter drill bits. The company employs more than 1,000 people and has manufacturing facilities in Carrollton, Houston, Matamoros, Mexico and Tarbes, France, as well as sales offices throughout the world.