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Integra brochure
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December 28, 2010

Jorge Lopez: - “Our goal is to improve the quality of integration”

Nefteservis (Oil and Capital)
December 2010, ¹ 4


Integra is one of the most dynamic Russian integrated companies in oil service market, which developed in August 2010 new strategy of development of drilling unit. Its main goal is to raise quality of business management and execution of clients' orders.
Jorge Lopez, Executive Vice-President (Drilling, Workover & IPM) of Integra Group, author of the strategy, told in his interview to Nefteservice about goals, principles and measures of realization of these changes.

Nefteservice: Mr. Lopez, Integra is a relatively young participant of oil and gas service market.   Still, you developed new Business Development Strategy of your unit. What is the reason for such changes?

— In 2004 Integra was established by means of consolidation of companies with different profiles. Main secret of the Strategy’s success is right focus, production, personnel, processes and equipment. Several business units work in Integra, which have fairly independent nature. It is important to maintain such identification and at the same time we need integration, unification of potential production of various production units in order to get synergy effect. This can be achieved through effective organizational structure, strong engineering team, system processes and procedures and high quality drilling equipment.
Strategy is an equation that includes personnel, processes and equipment, therefore, we acquire new and bring up to date operating drilling equipment, and we optimize organizational structure and develop management processes and intra corporative procedures.

Nefteservice: Intra corporative goal of the Strategy is consolidation of efforts and possibilities. And what is external goal? What do you want to achieve in the market with its implementation?

— This is very important issue to me. Our goal is to become unique company that produces not only machinery but also wide range of solutions for our clients.
Our branch consists of three business-units: drilling, workover and integrated project management. The goal is to provide for our clients complex solution: machine tooling units, excellent service and engineering. Now we are focused on Russian market, though at the same time we realize international productivity standards. After we resolve these issues, we can gain success in any market.

Nefteservice: How does your company plan to get the mentioned result?

— We split the Strategy upon several directions. In first turn, information will be consolidated and after its review we will see new opportunities for perfection or development.
The strategy provides pure technical things: characteristics required for renewal of drilling units and modernization of equipment. We manage our marketing review in the way that allows predicting things far ahead in order to evaluate our target market and make right choice in the process of selecting drilling equipment and meeting our clients’ demands in full.
We consider the personnel to be most important component. This means building of professional team, which members can manage resources effectively and distribute responsibilities in appropriate manner. If we follow this order, we can give life to the Strategy.

Nefteservice: How does Integra plan to use park of its drilling equipment in view of the new Strategy?

— Now we have close relations with oil companies. We discuss their needs and our potential. We have already determined some innovations that we are ready to offer to clients.  We are speaking about drilling units, which have never been used in Russia. They are so compact and powerful and effective that they make some sort of revolution in the market. In certain sense, our Strategy resulted from innovation vision of drilling process.
Certainly, usage of new technologies makes sense if they meet our needs and offer best solutions to the clients. We also have to use with maximum effect the equipment that we already possess, therefore, we designed plan of its modernization involving local resources.
We want to rearrange our park in order to perform widest range of orders, therefore, we have to review target market and understand, what kind of equipment we do need: exploration rock drilling machine, extraction, and etc. So, we are working on this matter.

Nefteservice: In your opinion, what kind of reaction do you expect from the market over the new Strategy?

— The most important thing is that our clients will approve our move in right direction. They are really interested in coming possibilities. When we present new Strategy and stages to our clients, they usually say: “Congratulations, let us see the results”, — this makes a challenge. We have to show to a client definite measurable result.”

Nefteservice: In order to implement new ideas, new organizational forms are needed. Did you make any reorganization in the branch structure as management unit?

— We spent approximately two months developing new organizational structure. We arranged several seminars for the branch employees. In the beginning it was not easy; however, we received suggestions from people and chose direction, where to move on. Certainly, reorganization process requires people who accept necessity of changes. New people join our team, including executive directors. It is necessary to train our employees, so, we design special training course.

Nefteservice: In general, how do you evaluate Russian colleagues from professional point of view?

— I evaluate them high. In any company, including our company, there are people ready to change, thinking and creative people. As I mentioned, new professionals join us and we form strong and experienced team.

Nefteservice: Big changes do not come easily, as a rule. What was the most difficult in the process of development of this Strategy?

— The most difficult factor in Strategy development process was people. In the beginning I faced understandable and justified resistance from team members. I performed several presentations for our employees and tried to interest them, bring to their minds idea of forthcoming changes, for we would become one team – Integra team. It was really important and most difficult part of the work.
I believe, there is nothing worse then come to work only for making money. Money is also important, but the work has to be a challenge that the person accepts in order to create something significant. Such philosophy of work has to embrace whole team and form creation atmosphere. To spread it and make the personnel be governed by it, inspire them – is a difficult task. Without delegating authority and right to make decisions this task is impossible to solve. At the same time, when people see how their efforts produce some results, they become happy and they want to invest efforts more and more.
This is my style of work. Otherwise, routine becomes an obstacle in motivation process. As our chief executive officer, Antonio Campo, says, formula of success begins from establishment of motivated team. I agree, and this subject is exactly what we are working with.

Nefteservice: How do you see resolution of problem of high qualified personnel? And how do you attract people to work in your company?

— Currently, this serious issue is under responsibility of our Employment Vice President. Certainly, salary and reward should be competitive, and we believe that coming reforms will help us to offer interesting career development for those who want to become part of highly effective Russian company. This involves yesterday's students and experienced engineers and managers of any level.

Nefteservice: These changes that you just told about, are they considered as predicted results of the Strategy implementation or do they build foundation for achieving new ones?

— I am already happy with what we have done just in several months. There are things that can be changed quickly; there are directions where we should move on faster, in my opinion. Our clients see that we are moving in right direction, improving and making modernization of drilling equipment and changing organizational structure and systemizing processes.
If we focus on quality of services, client will appreciate this fact and will gain from it. In turn, we also improve our position and increase number of orders.  This is so-called, win-win situation. We are to be focused upon quality and excellent productivity. Thus, quality is foundational issue. Quality is main principle of business effectiveness. The higher quality of services is, the higher trust level of our company is. This is important factor of long term relation development and subject of interest of our clients. Trust is built upon quality of services and partnership.

Nefteservice: How would you evaluate rating of your company among other participants of oil and gas market?

— Russian market is presented by numerous oil and gas local and international companies with different advantages and needs. We do not want Integra to become one of giants who often lack flexibility. Our goal is to become Russian integrated oil and gas Service Company providing solutions to clients and be the best company in the area of our strong sides.
We have our own advantages. First of all, Integra is a Russian company that unites high qualified experts with international experience and strong team of Russian employees.  We know market needs, we create processes that make us more effective in the area of practical solutions and all of this makes us different from the rest companies.
Except our branch, Integra includes other directions of oil and gas business that present us with opportunities to provide integrated services for any stage of well construction. From my point of view, this is prominent combination, formula of success. I see great perspective for development of the company and we want this vision to become reality for our workers and for our clients too.

Nefteservice: Do you mean set of services or certain services provided only by your company?

— As I mentioned before, our drilling unit, workover and integrated project management renders well construction services. The company also includes two more branches. Geophysics branch provides seismic survey set of services and processing and interpretation of seismic data. Technological service branch offers wide range of drilling tools and support services on construction in all stages of work. All three branches complete each other and that is why Integra takes special position in the market of integrated solutions.

Nefteservice: How you would comment rumors about Integra’s restructuring for selling its business to some of giants, for example, Schlumberger?

— Our chief executive officer clearly emphasized and expressed the idea when he was speaking to people and investors that it was not our intention to sell the company. Establishment of the joint venture made by Integra and Schlumberger or the fact that former Schlumberger employees work in our team, does not mean that the company is to be sold. Even more, this means that Integra will gain new experience and opportunities, which will raise its competitive ability in future.

Nefteservice: How do you evaluate current situation in Russian oil and gas market?

— Certainly, under crisis pressure business activity in all companies suffers decline. However, today we observe opposite tendency. Price for oil goes up, oilers start again their development programs and extend their orders. Here is situation in the world market and Russian market as well. I tell you, it becomes more and more difficult to find professionals because they are busy; such thing happens due to active growth of oil and gas market.
Therefore, now it’s a good time to be prepared for future actions in the growing market. For this purpose it is needed elaborated strategy, correct approach and good team. We have all of these components and when the market reaches its peak, we will be ready. In fact, we have already prepared foundation to provide future of the company not in rush manner, but continuous and stable moving forward.