CARROLLTON, Texas--(BUSINESS WIRE )--Varel International and NewTech Services (NTS) announce the creation of a 50-50 joint venture company focused on manufacturing, assembling, servicing and sales of oil and gas drill bits for the Russian CIS market and beyond. The joint venture, Varel NTS, will establish a state-of-the art PDC manufacturing and service facility in Kurgan, Russia, creating an alliance between Varel’s high 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. 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,” said Mike Reese, PDC vice president Varel International. He continued, “These focused solutions tools will prepare products for local field implementation and significantly improve performance.”

Mark Sadykhov, president of NewTech Services added, “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. 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.”

Per the agreement, 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 has been appointed Varel CIS Regional Manager. He 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,” explained Seeney.

Reese concluded, “We are fortunate to have found a partner in NTS. They are well versed in the drill bit business, so we did not have to battle a learning curve. The plans are in place and we are very well poised for the execution of successful operations.”

NewTech Services provides high technology products and services to companies within the oil and gas industry. Using advanced technology and innovative equipment, NewTech strives to improve our customers’ business profitability and assist in maintaining their business worldwide. NewTech Services is an exclusive Varel International representative, one of the leading international manufacturers of roller cone and diamond drill bits. Through this partnership, we offer vast drill bit selections and deliver specialized solutions using unique design optimization technologies. We support our customers by providing efficient delivery times for their sensitive deadlines and offer support service at all project stages. For more information please contact Kamil Zakirov, Vice President NewTech Services, at +7 495 363 68 74 or visit www.nt-serv.com/en

Founded in 1947, Varel International is the world’s largest independent supplier in the global oil & gas drill bit market. Headquartered in Carrollton, Texas, Varel services oil & 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, Texas; Houston, Texas; Matamoros, Mexico and Tarbes, France, as well as sales offices throughout the world. Varel’s proprietary design capabilities, efficient manufacturing, and global sales force uniquely position the company to provide high-quality drill bits that deliver excellent performance and value to its customer base. For more information, please contact Thomas Seeney, Varel Regional Manager at +33 559 14 59 31 or visit www.varelintl.com.

Varel International Brandi Williamson, +1.281.670.2413 Marketing Specialist bwilliamson@varelintl.com

Varel International Brandi Williamson, +1.281.670.2413 Marketing Specialist bwilliamson@varelintl.com